Transense Technologies PLC, the provider of sensor systems for the industrial, mining and transportation markets, has announced that on 24 June 2020, the company granted an exclusive worldwide licence to ATMS Technology Ltd, a newly-formed wholly owned subsidiary of Bridgestone, covering all current and future iTrack technology for a period of ten years.
In order to capitalise fully on the market potential of the use of the technology, the operational business and trading assets relating to the iTrack system have been transferred to ATMS at net asset value of approximately $1.01 million for cash consideration.
Under the licence, ATMS will offer Bridgestone customers worldwide with tyre monitoring systems for all off-the-road (OTR) vehicles based upon iTrack technology. Transense will receive quarterly royalty payments based upon the number and classification of vehicles upon which the iTrack technology is deployed over a ten year period. ATMS will have an option at the end of the ten year period to purchase the iTrack technology for a nominal cash sum. The initial quarterly royalty based upon OTR vehicles currently utilising the iTrack system will be approximately £0.15 million.
On 13 August 2019, Transense announced that it had entered into a Joint Collaboration Agreement (JCA) by which Bridgestone offered the iTrack system exclusively as a mining tyre monitoring system for tyres 57 inches and above for its OTR customers. Customer response to the tyre management platform has been overwhelmingly positive. Bridgestone will expand this offering to additional OTR customers as it fully integrates the solution into its portfolio.
Bridgestone had provided Transense with a working capital facility of $0.75 million to support the anticipated increase in sales activity. A further loan of $1.20 million was announced on 16 March 2020 to fund additional working capital. The JCA was terminated on 24 June 2020 and the repayment of the loans has been taken into account in the consideration.
ATMS will employ all Transense staff previously engaged wholly or mainly by the iTrack business, including David Ford as Chief Executive Officer and Graham Storey as Director, Global Sales. David and Graham have resigned as directors of Transense with immediate effect. Nigel Rogers, who now becomes Executive Chairman of Transense, will also be appointed as a Non-Executive Director of ATMS in his capacity as the representative of Transense.
Nigel Rogers, Executive Chairman of Transense commented: “These arrangements further demonstrate the position of iTrack as a globally-preferred provider of tyre management solutions for the off-the-road (OTR) vehicle market, which we believe will achieve even greater success with Bridgestone.”
Tomohiro Kusano, Vice President and Senior Officer, Responsible for G-MAA (Mining, Aircraft, Agriculture) Solutions Business, Bridgestone Corporation, commented: “This helps move Bridgestone closer to its goal of becoming a leader in sustainable and advanced mobility solutions. As a global solutions provider, Bridgestone will create new value for our customers by delivering tyre and mobility-related data that enhances their operations.”
