7th Apr 2015 07:40
LONDON (Alliance News) - Digital video security systems company SerVision PLC on Tuesday said it has signed a new partnership agreement in Brazil with local surveillance technology company Sectrans.
SerVision's SerVision Ltd subsidiary has entered into a partnership with Sectrans under which the latter will distribute SerVision's video gateway products in the Brazilian market.
Under the terms of the agreement, Sectrans will have exclusivity over the distribution of the company's video gateway products in Brazil until December 2016, SerVision said.
It added that Salineira, a Rio de Janeiro-based bus operator and existing Sectrans customer, has already committed to an initial purchase order for 400 MVG400 video monitoring units with an aggregate value of USD500,000. SerVision said USD250,000 has already been paid to the company, with the balance to be paid when it delivers the units to Sectrans.
Sectrans will pay SerVision a 15% sales commission on the net revenues generated from all monthly maintenance fees for projects requiring MVG200 units and a 20% sales commission on the net revenues generated from all monthly maintenance fees for projects requiring the MVG400.
"We are pleased to enter into this partnership agreement with Sectrans to supply SerVision's video gateway products in Brazil, a territory where SerVision already has market penetration through its existing customers in the local bus industry including Auto Viacao 1001 and Breda Rio," said SerVision Chairman and Chief Executive Gidon Tahan.
SerVision shares were up 8.6% to 3.8 pence in early trade, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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