RS2 Software plc – Information to maintain a fair market

RS2 Software p.l.c. announced that it has entered into a license agreement for its proprietary software BankWORKS® with a global payment processing company. The total value of the Agreement is of €12,000,000. The Agreement stipulates that the license granted is for a five year term with an option to convert to a perpetual license in accordance with the terms. Furthermore, RS2 Software p.l.c. has entered into a Services agreement with the Licensee with an annual minimum spend by the Licensee of €1,500,000 for the first three years of the agreement (total value of €4,500,000). 

The amount of revenue recognised is dependent upon the terms of the Agreement between RS2 Software p.l.c. and the Licensee and for such purpose IAS 18 stipulates that for revenue to be recognised conditions as per the IFRS need to be met. 

This is one of the agreements with an existing client referred in the Company Announcement RS265 dated 14 November 2013. 

To view the official company announcement, click here.