Leading UK mobile payments firm Monitise has reached agreement to acquire Clairmail, a US company that provides a mobile banking service to more than one third of the top 50 banks in North America. The deal, which will be funded through the issue of new shares by Monitise, values the US company at US$173 million. The acquisition boosts the UK company’s presence in the US mobile payment market where Clairmail saw a 90 percent increase in its revenues in 2011. The deal needs US regulatory approval as well as that of shareholders. It is expected to close before the end of the current financial year.

The combined businesses would provide mobile money services to 13 million registered end-users via leading financial institutions in the UK and US such as Royal Bank of Scotland, Lloyds TSB, PNC Bank US Bank and Fifth Third Bank. Monitise is also pushing into emerging markets such as India and Nigeria. Monitise expects the Clairmail management team to remain with the enlarged company.  Alastair Lukies, group chief executive of Monitise, described the deal as “transformational” for Monitise.

The UK firm recently worked with Visa on enhancing its platform so that it can offers financial services to mobile customers in the US. The credit card giant is also a shareholder in the UK firm.