DeepVerge PLC (LON:DVRG) said it has signed non-binding heads of terms with mass spectrometer maker Microsaic Systems PLC (LON:MSYS) to enter a multi-year framework services agreement through which DeepVerge will be appointed as a non-exclusive agent to promote the latter’s technologies.
The technology firm said the agreement, which will be completed by March 31, will allow for the supply of miniaturised mass spectrometry contamination detection equipment and services across DeepVerge's sales network as well as its marketing and distribution channels in the laboratory, chemical, biochemical, biofuel and biodegradable plastic and waste-water treatment industries.
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The heads of terms include the provision for an initial order of two units, worth £50,000 each, plus a commitment of up to £150,000 by DeepVerge to install pilot facilities located in its newly expanded laboratories in York, UK.
DeepVerge added that under the deal it is expected that Microsaic will pay an agency commission based on revenues from customers introduced by the company. The agreement is also expected to have an initial period of three years.
The firm also said that Microsaic will join the EcoWaterOS consortium, an end-to-end water contamination detection and decontamination solutions provider network, for real-time monitoring and detection of contaminated water.
"We are pleased to part of the commercial expansion plans of Microsaic and welcome them to the ecowaterOS consortium. The addition of the Microsaic technology to our own laboratory equipment sales portfolio is entirely complementary”, DeepVerge chief executive Gerard Brandon said in a statement.
“This opens up additional opportunities to jointly develop new products and services by working with their experts adding smart AI cloud-based data analytic technologies and best-in-class engineering which have successfully operated at commercial scale in the brewing, biofuel, chemical and wastewater treatment industries", he added.
Shares in DeepVerge rose 0.7% to 30p in early deals on Monday.