Radview Software, a leading provider of solutions for verifying the performance, scalability and integrity of business-critical web applications announced it has completed a $1m technology license transaction with an as-yet-unnamed OEM partner.
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Under the terms of the deal, RadView received a fee of $1m for a technology license to use WebLOAD, RadView’s flagship load-testing product, as a result of the exercise of an option by the OEM partner.
RadView will also be entitled to receive royalties at a reduced percentage rate for a period of 12 months following the exercise of this option or, at the election of the OEM partner, as a single lump-sum payment to RadView in the amount of $250,000 in settlement of such royalty obligation.
“This technology license is a testament to the quality of our software and our ability to work with vendors to deliver a solution of value to their customers,” comments Ilan Kinreich, president and CEO of RadView.
“This transaction will positively contribute to our revenues over the next year, and is a demonstration of our ability to expand our relationships with channel partners, which is a key part of RadView’s operating plan.”
RadView is obliged to provide product updates and technical and engineering support for 12 months following the payment of the technology licence fee.
RadView expects to account for the technology license fee as a subscription arrangement and will recognise this revenue over the next 12 months. If the OEM partner elects to make the $250,000 payment in lieu of its reduced royalty obligation, then this amount would also be recognised as revenue over the next 12 months.