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Shares in mobile banking and payments service providerMonitise (LSE: MONI) lifted by more than 14% in early trade this morning, following the announcement of an alliance with US giant IBM.
The collaboration will seeteams from Monitises UK development and integration business (Professional Services, comprising around 20% of its employee base) transferred into IBM, whiletheAmerican technology and consulting corporationwilldeliver services back to Monitise.
Todays agreement also means that Monitises ability to manage larger projects worldwide has been increased substantially, allowing the companys technology tobe enabled, hosted and sold as an IBM cloud-delivered solution globallyin the business-to-business space.
IBMs resources and initiatives will become available to Monitise to pursue Mobile Money opportunities, currently limited to financial institutions but the alliance hints at targeting retailers, mobile network operators and similar markets in the future.
The news strengthens Monitises target of 200 million users of Mobile Money products by 2018, each generating an average revenue of 2.50, as well as reaching a profitable status in the 2016 financial year, after having to lower its full-year guidance early last month after shifting to a subscription-based revenue model.
How muchfurther you believe Monitise has to run is down to you. But if you’re looking for a growth share with excellent prospects AND pays a dividend, then you really need to read our latest specialFREEreport, “The Motley Fool’s Top Growth Share For 2014“.
Sam Robson owns shares of Monitise. The Motley Fool UK owns shares of Monitise. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.