Under the five year agreement, IBA will provide software for medical applications to Kodak's Health Imaging Group, which provides medical-imaging products and services and accrues revenues of up to US$2.43 billion.
According to the terms of the agreement IBA will licence software exclusively to Kodak for five years to be used in all international markets except in Australia, New Zealand and most of Southeast Asia, as IBA also competes in these locations.
The company said it expects a guaranteed minimum return of AU$35 million for the term of the agreement with potential for higher royalties depending on the volume of sales. The company will also receive AU$5 million over the next two years for services and product development compensation.
"This arrangement completes one of the core stated objectives of IBA: to internationalise our clinical product and to derive a substantial return on the investment made over the past few years," said Gary Cohen executive chairman of IBA. "IBA's now enhanced financial position provides the platform for us to pursue a number of growth opportunities."