Seeing Machines Limited (LON:SEE) has inked a pre-production licence deal for its driver monitoring system (DMS) technology with a major automotive tier one partner.
Under the agreement, the AIM-listed firm will receive a pre-production licence fee of US$5mln before June 30, 2020, in addition to future volume-based royalty payments.
It said the deal has been entered into under the terms of a pre-existing non-exclusive collaboration agreement for Seeing Machines’ to provide its DMS tech for an ongoing automotive programme.
"We have been working on a range of opportunities to license our DMS technology across each transport sector and are delighted that the first to be completed is in our Automotive business with a key Tier 1 partner”, Seeing Machines chief executive Paul McGlone said in a statement.
“This approach to doing business is key to long-term sustainability and appropriate management of our balance sheet especially in businesses where revenue tends to be longtail in nature", he added.
The company's shares surged 7% to 1.9p in mid-morning trading on Wednesday.
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