Illimity Bank sells IT source codes to Engineering Group in €55.5m deal
Italy’s Illimity Bank is to sell the source codes of its IT platform to Engineering Group in order to broaden access to its technology.
Illimity sells IT tech source codes to Engineering Group
The €55.5 million deal, set to be paid over 2023-2026 with a potential additional €4.5 million between 2024 and 2032, will allow Illimity to increase the “market potential” of its IT assets.
On its side, the partnership will allow Engineering to expand its portfolio of solutions, applications and platforms, as well as support Illimity in future developments.
Under the deal, Engineering will also pay Illimity “significant” royalties from the gains realised through the offering of the IT platform to third parties, based around a Software-as-a-Service (SaaS) model.
Engineering will also provide expertise and specialist skills to support the long-term development of Illimity’s IT platform, becoming the bank’s technology partner of choice, an arrangement valued at €15 million per year for the period between 2023 and 2032.
Contractual details are to be hashed out by 30 June with an option to extend that deadline if contracts are not signed by that date.
Illimity Bank recently signed a €200 million agreement with the European Investment Bank (EIB) to support the working capital needs of SMEs.
