Irish mobile payments company Network365 will merge with former US rival iPIN in a move that will create a leading global e-payments firm, according to a US analyst.
The new entity, called Valista, will be based jointly in Dublin and Silicon Valley and will be led by Network365 chief executive and serial entrepreneur Mr Raomal Perera.
Mr Perera said he did not expect any "significant reductions" in either company's workforce as a result of the merger. He expected Valista to break even by the end of the year, he said.
IPIN chief executive Mr Alexandre Gonthier will become Valista's chief strategy officer while American entrepreneur and investor Mr Andi De Mari, current chairman of Network365, will become chairman of Valista.
Mr Perera said there were "strong synergies" between Network365, which specialises in "macropayments" or large-scale payment management systems for mobile networks, and iPIN, which focuses on "micropayments", small payment transactionsbetween consumers and traders online or via mobiles.
Both firms had found customers were asking about software solutions that could address both micropayments and macropayments,Mr Perera said.
Network365 has a strong base in the Asian and European market, while iPIN is well anchored in the American and European markets.
Yankee Group mobile commerce analyst Mr Adam Zawal described the merger as a blend of "two leading mobile technology companieswith complementary technologies, global customers and key partnerships". Valista should emerge as a leader in the global payments market and the merger should help in the development of international payment standards, he said.
Both companies are privately held and declined to reveal the value of the all-share deal. The Irish group employs 80 people and the US operator 20.
Valista's investor portfolio includes iPIN's existing investors, Sutter Hill Ventures and Accel in the US, which will join Network365's existing investors.
Network365, which has its registered office at Glencormack Business Park, Kilmacanogue, Co Wicklow, had accumulated losses of €5.7 million at December 31st, 2001, the latest date for which figures are available.
A financial statement for the year to that date gave the company's net assets as €11.5 million. No profit for the year was given although the accumulated losses increased by €1.2 million.
