Network365 has revealed plans to merge with a US company in a move aimed at turning the company into a global powerhouse in mobile payments technology.
Network365 will merge with iPIN and the new company will be called Valista. The deal will combine Network365’s leadership in the Asian and Latin American markets with iPIN’s established markets in Europe and the US.
The merger is expected to be completed in January 2004. On completion, Network365 founder Raomal Perera will become CEO of Valista and the current CEO of iPIN, Alexandre Gonthier, will become chief strategy manager. Network365’s existing chairman Andy DeMari will become chairman of the new company.
It is understood that industry analysts have reacted positively to the merger, viewing it as a significant event that will enable the growth of payments technology and the evolution of standards in the sector.
Network365’s mzone multichannel payments product has been deployed in 18 countries by such companies as 3, NTT DoCoMo and Hong Kong CSL. iPIN’s end-to-end payment platform has been deployed by Vodafone UK, France Telecom, T-Online, Orange, Accenture and Tiscali.
Commenting on the deal, Perera said: “Network365 has a strong presence in Asia and especially in Japan with a world-class customer base of leading mobile operators. iPIN has made significant inroads into the ISP and landline operator sector and is primarily focused on the US and European markets.
“The synergies between the companies are striking and this merger will fundamentally change the payments marketplace. Valista will have a broader customer reach and an expanded global footprint which will enable us to become the world leader in payments solutions and standards. Our vision is to grow the company so that wherever you are, and however you pay, the solution deployed will be based on Valista’s payments technology.”
Alexandre Gonthier, iPIN’s CEO said: “The merger of iPIN and Network365 is very exciting and will create what we believe will be the leading global provider of electronic and mobile payments technology. Both companies have experienced management teams, proven complementary products, a presence in key markets and wide global customer and partner bases. Valista is well positioned to exploit the opportunities in converged payments solutions among fixed line operators and ISPs as well as wireless operators.”
By John Kennedy