RS2 plc - New Licence & Service Agreement

On 4 June, RS2 Software plc announced that it entered into a license agreement for its proprietary software BankWORKS® with a global payment processing company for a total value of €12,000,000.

The agreement stipulates that the license granted is for a five-year term with an option to convert to a perpetual license in accordance with the terms. Furthermore, RS2 entered into a services agreement with the licensee with an annual minimum spend by the licensee of €1,500,000 for the first three years of the agreement (total value of €4,500,000). RS2 explained that the amount of revenue recognised is dependent upon the terms of the agreement between RS2 and the licensee. This is one of the agreements with an existing client referred in the Company Announcement dated 14 November 2013.