KVB Kunlun Financial Group Limited has entered into a new technology services agreement worth upwards of $7.1 million with Banclogix, a wholly-owned subsidiary of KVB Holdings, following an existing relationship between the two entities, per a recent KVB statement.
The new information technologies services deal will take place over the next three years, with payments being made on December 31, 2016, 2017, and 2018. Previously KVB and Banclogix had entered into a duality of agreements back in early 2014 and December 2015, which have since expired.
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In particular, the KVB/Banclogix deal will see the latter providing software development and maintenance services, as well as information technology infrastructure project management services and information technology infrastructure maintenance services to KVB over the duration of the next three years.
Terms of the deal
For its part, KVB has paid an upfront fee of $451,279 (HK$3.5 million) to Banclogix for its software licensing agreement, which also includes an additional sum of $2.1 million (HK$16.5 million) for information technology services rendered, due by December 31, 2016. Moreover, the following two years will also see KVB pay a total of $5.0 million (HK$39.0 million) by December 31, 2018 for the aforementioned services provided by Banclogix.
The primary impetus behind the deal was KVB’s desire to bolster and improve its information technology infrastructures as well as its capabilities – Banclogix’s services suite has been supporting KVB for the past several years, which has helped mitigate any interruptions to its technology infrastructure.