Monitise Buys Grapple for £16.5m

Mobile app developer Grapple has been bought by Monitise about £16.5m in stock, plus an addition earn-out of up to £22.9m, payable on the achievement of aggressive performance-related targets. It’s the mobile banking, payments and commerce tech firm’s second mobile acquisition, after it bought mobile payments firm, Mobile Money Network, last December. 

Grapple will form part of Monitise Create, a division focused on designing and developing digital strategies and user experiences. Grapple’s clients include Whitbread, Procter & Gamble, Sky and B&Q. Monitise’s platform powers mobile services for financial institutions including  RBS, Lloyds TSB, HSBC and Standard Chartered. 

“The Grapple acquisition marks another important milestone for the growth of our global group and further cements our leading position as a trusted enabler at the centre of the Mobile Money ecosystem,” said Monitise Group chief commercial officer, Lee Cameron…“As our mobile devices become more advanced, it is Monitise’s stated role to ensure that our key customers and partners can provide their customers the most cutting edge and intuitive interface possible.”

The acquisition comes as Monitise reported losses of £19.3m for the 12 month to 30 June. This compares to a loss of £10.4m the previous financial year. The increased losses come off the back of increased operating costs, which more than doubled to £74.5m, compared to  £34.4m the previous year.