Hogan Lovells has represented UK-based mobile payments group Monitise on a seven-year global resourcing deal with IBM.
The deal was announced yesterday (28 August) as part of IBM’s move to increase its cloud solution portfolio on a global scale.
The strategic deal, which is the first instruction from Hogan Lovells from Monitise, will mean that IBM will be able to sell Monitise’s technology as its own in the international business-to-business space and Monitise will be a step closer to achieving its target of 200m users by 2018.
The agreement, which is effectively a go-to-market strategy as well as an outsourcing deal, includes the transfer of 20 per cent of Monitise’s 1,000 employees, with IBM providing other services in exchange. Initially it has been agreed that the outsourcing deal will last seven years.
Hogan Lovells partner Mark Taylor led the firm’s advice. In-housers Craig Rogers and Maria Duclos advised IBM.
Negotiations kicked off in June and were completed over the weekend.
Taylor said that this deal demonstrated how companies “are seeking cost-effective ways to serve and grow their global client base”.
Background to this deal:
Hogan Lovells approached Monetise finance director Brad Petzer in October 2013. The firm was then invited to pitch for the possible deal between Monetise and IBM in May 2014, and was appointed as the company’s external counsel for this specific deal.
Hogan Lovells has represented IBM in other matters, although it said that there was no conflict of interest in this deal.