Monitise acquires mobile app business Grapple in £39m deal
2012 Young Gun’s company bought by fellow Young Guns alumnus Alastair Lukies' firm
London-based app design agency Grapple has been sold to AIM-listed mobile payments firm Monitise for £39m, it announced yesterday.
Launched in 2008 by 2012 Young Gun Alistair Crane and serial investor Jamie True, Grapple specialises in designing apps for smartphones and works with major brands including Whitbread, Sky, Procter & Gamble and B&Q.
Monitise, led by 2007 Young Gun Alastair Lukies (pictured above), bought the design agency’s entire share for £16.5m with a further agreed payment of up to £22.9m dependent on its achievement of performance-related targets.
True, who is the largest shareholder in Grapple, is expected to receive a £15m pay-out with Crane likely to collect over £5m for his stake.
The news follows Monitise’s announcement that it has now doubled its revenues to £72.8m with more than $50bn payments and transfers now made through its services.
It also secured a new partnership with IBM this week which will allow the multi-national giant to implement payments through Visa using Monitise’s technology.
Crane discussed the decision to sell stating that after turning “down several bids from day one” they were attracted by the payment provider’s “financial backing and global footprint”.
Monitise CEO Lukies discussed the success of its offering so far commenting: “This is not cutting edge, this is mainstream now.”