Spenda Ltd (ASX:SPX, OTC:CROTF) has secured a Master Services and Licence Agreement (MSLA) with the largest automotive cooperative in Australasia, Capricorn Society Limited, for the provision of software and e-commerce payment infrastructure.
Under the agreement, SPX will work closely with Capricorn to customise its payment infrastructure for Capricorn’s members and preferred supplier network over the next six months.
The two companies expect to begin onboarding Capricorn’s network from mid-2024, which will generate a minimum of $2 million in revenue for Spenda in that calendar year.
Revenue expected to scale “significantly”
“We are delighted to partner with Capricorn over the long term under this Master Services and Licence Agreement, which is an important milestone for both Spenda and Capricorn,” Spenda CEO and managing director Adrian Floate said.
“We are working towards the onboarding of customers in 2H FY24 and we expect our revenues to scale significantly over the years ahead as the solutions are rolled out to the Capricorn Member network.”
The two parties have also agreed to a 5+5 year option, which would extend the agreement to a 20-year term should it be exercised.
Spenda says the MSLA serves as a foundation for both companies to build joint initiatives that can improve the “digitisation of the automotive industry over a decades long horizon".
“This long-term agreement with Spenda is the end result of a comprehensive project to trial the new digital payments infrastructure,” Capricorn CEO (Automotive) Bradley Gannon said.
“We now have full confidence to proceed with the commercial launch to our member network in 2024 which will improve the flow of funds through the large network of buyers and suppliers in the automotive industry.
“We expect the Digital Services Delivery initiative and new payments infrastructure will deliver substantial value to our member network for decades into the future.”