21st Dec 2020 15:08
(Alliance News) - IMImobile PLC on Monday said it has entered into an IP licensing deal with Cisco Systems Inc, after agreeing to a GBP543 million takeover from the US networking firm.
The AIM-listed cloud communications software company said the deal means Cisco has the rights to "advertise, promote, demonstrate, sell, distribute and otherwise market certain of IMImobile's current or future products" for a period of up to three years.
"Cisco values IMImobile's products and services highly and wishes to utilise them as part of its product offering as soon as practicable. The IP licensing agreement provides Cisco with access to those IMImobile products on standard commercial terms with immediate effect and will continue in the event that the offer were not complete for any reason," IMImobile explained.
"This, in addition to the increasing momentum from digital transformation trends, the new client wins in the North American market and the pipeline of opportunities, means that the board expects the trading performance for financial 2022 to be further enhanced from its previous expectations."
Under the terms of the takeover deal, Cisco Systems Holdings UK Ltd, a subsidiary of the US networking equipment maker, is to pay 595 pence per share for IMImobile, valuing IMImobile's entire share capital at around GBP545 million on a fully diluted basis.
IMImobile shares were 0.7% lower at 586.00 pence each in London on Monday afternoon. Cisco was down 2.1% at USD44.48 each in New York on Monday morning.
By Eric Cunha; [email protected]
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