4 Apr 2016 07:00
Castleton Technology Plc
("Castleton", the "Group" or the "Company")
Licence Agreement
Castleton (AIM:CTP), the leading provider of technology products and services to the social housing and not-for-profit sectors, is pleased to announce that it has formalised its existing exclusive reseller agreement with 365 Agile Group plc ("365Agile") and has entered into a new perpetual licence agreement with 365Agile whereby Castleton has been granted an exclusive licence for 365Agile's suite of mobile working software solutions in relation to the social housing sector (the "Agreement").
365Agile's software solutions are complementary to Castleton's range of solutions which have been designed to enable social housing organisations to work more efficiently and effectively. 365Agile's software solutions allow field based/ customer facing teams to securely access any system, data and/ or document from any global location, allowing users to complete tasks in real time (the "365Agile Product").
Under the terms of the Agreement, Castleton will pay 365Agile £600,000 for each of the years ended 31 March 2017, 2018 and 2019 with the potential for a further payment of at least £300,000 in the year to 31 March 2019 dependent on total sales during the first three years of the Agreement. In addition, it is intended that certain employees of 365Agile will be transferred to Castleton in order to assist with development and implementation of Castleton's suite of software solutions, including the 365Agile Product.
This new arrangement extends and enhances the existing distributor relationship between the companies and is expected to stimulate sales of the 365Agile Product in the social housing sector for the benefit of Castleton.
The Board of Castleton believes that the Agreement is strategically important as it secures the Company's use of the 365Agile Product going forward whilst enabling Castleton to keep 100% of the revenue associated with sales thereof by the Company, compared to having a 70% commission payable to 365Agile under the previous agreement.
Related Party Transaction
Entering into the Agreement is considered a related party transaction under the AIM Rules for Companies on the basis that Davinder Sanghera, COO of the Company, together with her partner Jonathan Holyhead, hold over 30% of the voting rights in 365Agile. The independent directors (being David Payne, Phil Kelly, Haywood Chapman and Caro Bell) consider, having consulted with finnCap Ltd, that the terms of the Agreement are fair and reasonable insofar as shareholders of the Company are concerned. Ian Smith, CEO, was not considered independent in this instance on the basis that he is a partner at MXC Capital Limited, which is a substantial shareholder in both Castleton and 365Agile.
Enquiries:
Castleton Technology plc Ian Smith, Chief Executive Haywood Chapman, Chief Financial Officer | Tel. +44 (0)845 241 0220 http://www.castletonplc.com |
finnCap Ltd Jonny Franklin-Adams / Simon Hicks | Tel. +44 (0)20 7220 0500 |
MXC Capital Markets LLP Marc Young / Charlotte Stranner Alma PR Josh Royston / Hilary Buchanan
| Tel. +44 (0)20 7965 8149
Tel. +44 (0)208 004 4216 |
About Castleton Technology plc
Castleton Technology plc is a leading supplier of complementary software and managed services to the public and not-for-profit sectors. The acquisitions of Montal, Documotive, Opus, Keylogic, Brixx, Impact Applications and Kypera bring together an exceptional suite of solutions, providing the foundation for this platform. Castleton works in partnership with its customers and resellers to help drive efficiencies whilst improving controls and customer service. www.castletonplc.com