RNS update7 Sep 2022 08:51
RNS Number : 5165Y
LoopUp Group PLC
07 September 2022
7 September 2022
LOOPUP GROUP PLC("LoopUp" or the "Group")
PGi Connect contract update
LoopUp Group plc (AIM: LOOP), the cloud platform for premium hybrid communications, is pleased to announce an update on its agreement with PGi Connect.
On 1 September 2022, the Group announced that it had entered into a revenue sharing and customer transfer agreement with PGi Connect, which gives LoopUp the rights to transfer materially all of PGi Connect's conferencing services customers (but not its webcasting customers) over to LoopUp. While no initial or fixed consideration is payable, the Group will pay PGi Connect a share of revenue invoiced and received from successfully transferred customers for a period of three years.
On Friday 2 September, PGi Connect sent out the first and largest batch of contract assignment notices to c.8,100 of its enterprise customers concerning the transition of services to LoopUp from 1 October 2022. These customers currently generate an annualised revenue run-rate of c.£34 million to PGi Connect.
While this is clearly a highly material level of assigned business, and while more is expected to be assigned from PGi Connect to LoopUp in due course, the Group nevertheless reiterates that after making prudent transition loss assumptions for non-term-committed customers as well as general ongoing business attrition, it expects the PGi agreement to generate revenue of approximately £10 million and net cash contribution to the Group of approximately £5 million over the twelve-month period from October 2022 to September 2023.