The Board of Intermoco Ltd (Intermoco) is pleased to announce that it has finalised the agreements for the establishment of the strategic alliance with Polymeters Response International Ltd (PRI) referred to in the Board’s announcement on 21 November 2006.
Under the new arrangements Intermoco has granted PRI an exclusive license to market and distribute Intermoco Advanced Metering Infrastructure (AMI) technology in Australasia and in international markets where it has a substantial market position. In addition, a joint venture company has been established to market metering services solutions to the Australian secondary market.
PRI is a significant UK based company and as a member of the Entity Group is one of the top five suppliers of meters and metering services worldwide. The Entity Group has a major market presence in India, UK, Scandinavia, Asia, the Middle East, and South East Asia. Under the Licensing Agreement PRI will market the Intermoco AMI technology in Australasia through PRI Australia Pty Ltd and to global markets through associated companies within the Entity Group. Intermoco will also work co-operatively with PRI and the Entity Group to develop integrated advanced metering infrastructure solutions for international markets.
PRI will market multi vendor, end to end, AMI solutions to utilities based on the integration of PRI and Intermoco technology. These solutions will retain the multi vendor capability inherent in the Intermoco Utiligy AMI system.
As notified to the market on 21 November 2006, the license agreement will earn Intermoco in excess of $10 million from license fees, and royalties over a period of five years.
It is anticipated that the overall return to Intermoco will exceed this based on sales of the Intermoco AMI technology in global markets where the licensee has a substantial market presence.
Intermoco and PRI will also establish a new joint venture company in Australia to market advanced metering systems providing multi utility solutions to customers in the secondary metering services market.
The joint venture company, PRI Utiligy Pty Ltd, is expected to commence operations in February 2007. Intermoco has been a market leader in supporting AMI based metering services solutions to the Australian secondary market and the new joint venture company will combine the capabilities of both companies to offer a new comprehensive range of services to the Australian secondary market.
The Intermoco Board is excited by the prospects and opportunities that the strategic alliance with PRI will bring and looks forward to the effective commercialisation and distribution of the Intermoco technology through the new marketing arrangements.
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