Monitise said Monday that it is buying Clairmail, a San Rafael, Calif.-based provider of mobile banking and payments technology.

Monitise, of London, says the deal would strengthen its position as a mobile banking provider, improving its scale in the U.S.

It is funding the acquisition by issuing 312.8 million shares, valuing Clairmail at $173 million based on Monitise's share price at the close of trading on Friday. Monitise expects the acquisition to close by June 30, which is the end of its fiscal year.

Clairmail's staff, including its management, is expected to remain after the deal closes. The combined company will have 600 employees worldwide.

"We are excited to be joining the Monitise family at a key point in the mobile money revolution," said Pete Daffern, Clairmail's chief executive, in a press release.