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Buddy Technologies to licence 500,000 smart light products to China manufacturer

Technology
ASX:BUD
22 November 2019 12:00 (AEST)

Buddy Technologies has entered into an agreement to licence its Powered by LIFX platform to Eastfield Lighting.

Initially, 500,000 smart lighting products will be licensed. This order represents Buddy’s largest Powered by LIFX deal to date.

Eastfield Lighting is a prominent Hong Kong-based designer and manufacturer of industrial, commercial and residential lighting solutions.

The deal is a non-exclusive, 10-year, multi-product licensing agreement to build smart lights that are compatible with LIFX, Buddy’s suite of smart lighting solutions that are used commercially and in nearly one million homes.

The agreement provides for a non-refundable payment of A$368,000 (US$250,000) to jumpstart the contract.

Eastfield’s customers will have the option to either have their products controlled by the publicly available LIFX mobile applications, pay an additional fee to rebrand the mobile apps, or engage Buddy’s Managed Services team to develop customised applications.

Buddy Technologies CEO David McLauchlan has spent a lot of time at Eastfield’s factory in Shenzhen and believes they are an opportune partner.

“I’m delighted to have the opportunity to work with Eastfield on making their products smart, and delivering even greater value to their customers globally,” David said.

“This agreement is a big win for our commercial licensing team and for future customers of Eastfield’s lighting products,” he added.

The Powered by LIFX program has been implemented by the combination of Buddy’s Managed Services team and LIFX’s technology platform.

Licensing the platform into third-party products provides a level of market reach and revenue that wouldn’t be achievable solely as LIFX.

Buddy’s shares have soared 16.7 per cent after today’s news, with shares trading for 2.8 cents each at 11:11 am AEDT.

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