CyanConnode storms on $4m Chinese licensing deal

Cyanconnode leapt on Friday after signing a $4m licensing agreement to allow Beijing Jingybeifang Instrument Co to use its reference designs to manufacture advanced metering infrastructure.

The agreement, which is Cyanconnode’s first licensing deal, will see the Chinese company pay a license fee each time an RF module and/or gateway unit is manufactured over a two-year time frame to eventually reach the $4m mark.

John Cronin, executive chairman of CyanConnode, said: "CyanConnode can provide licensing packages that support partners' needs as well as facilitating the localised manufacture of components. As there will be little or no associated development or manufacturing costs, the impact on our resources will be minimal. We look forward to a long and successful collaborative partnership with Beijing Instruments."

Meter manufacturer Beijing Instruments is a main supplier to the State Grid Corporation of China and has also agreed to collaborate on sales opportunities with CyanConnode outside of China.

Li Yi, general manager at Beijing Instruments, said: "The CyanConnode licensing package enables Beijing Instruments to offer its customers next generation smart meters based on IPv6 standard RF mesh network technologies that are self-forming and self-healing. Beijing Instruments, a State-owned company, is well positioned in the Chinese smart metering market."

CyanConnode’s shares were up 24.21% at 11.80p at 1211 GMT.