Digital video security specialist SerVision (LON:SEV) has extended its reach in Brazil - with a new partnership deal to provide its products across a number of vehicles.
The deal is with Sectrans, which provides surveillance tech for vehicle fleets in the South American country, and which has been hired as exclusive distributor of SerVision's mobile video products.
Target customers will be high-end buses, police cars, ambulances, vans and trucks carrying high-value assets like tobacco and cash, fuel haulers, municipal vehicles and security and foot patrol officers (using the group's wearable CCTV solution).
Sectrans will try and sell 2,000 units before December 31, 2015 and a further 4,000 units before the end of 2016.
SerVision revealed that Salineira, a large Rio de Janeiro-based bus operator and end customer of Sectrans, had already committed to an initial purchase order for the supply of 400 units for US$500,000, of which US$250,000 in cash has been paid to SerVision with the balance expected shortly.
Sectrans also aims to charge end-customers a monthly maintenance fee for each MVG200 and MVG400 unit once sold and has agreed to pay SerVision 15% sales commission on the net revenues generated from all monthly maintenance fees for projects using the MVG200 and a 20% sales commission on net revenues from all monthly maintenance fees for projects requiring the MVG400 unit.
Gidon Tahan, chairman and chief executive of SerVision, said: "We are pleased to enter into this partnership agreement with Sectrans to supply SerVision's video gateway products in Brazil, a territory where SerVision already has market penetration through its existing customers in the local bus industry including Auto Viacao 1001 and Breda Rio.
"This agreement is also reflective of our evolving business model where we seek to generate monthly maintenance fees once our technology is sold to the end-customers. We are confident that our relationship with Sectrans, a leading surveillance technology business in Brazil, will develop further over the coming years."
In January this year, the group bagged its first contract in Kazakhstan after it was chosen to supply its on-board transport closed-circuit television (CCTV) systems to 360 buses in Astana, the capital city.