Italian digital bank Illimity Bank has sold a copy of the source code for its IT platform to The Engineering Group, outsourcing development and collecting royalties from onward sales to other banks.
Engineering is buying the source code for €55.5 million along with the exclusive rights to market the platform over a ten-year period. An additional €4.5 million may be added in the period 2024-2032 in return for further platform upgrades provided by illimity that Engineering has the option to acquire.
The agreement also entails the payment by Engineering to illimity of a "significant amount of royalties" on the results of on-sales to third party clients.
In return, Engineering has been guaranteed a ten-year contract worth €15 million per annum to provide expertise and resource to support the long-term development of the platform as illimity's technology partner of choice.