Starcom PLC (LON:STAR) Updated Contract with Zero Motorcycles

Avi Hartmann, CEO of Starcom, commented, “This new SOW demonstrates the depth of integration we have achieved with Zero and the strategic nature of the relationship. We are also pleased to see Zero’s confidence in increased demand for the units.

“We believe that this is a significant milestone for Starcom and we are proud to be part of the electrical revolution in the transport market which we expect to lead to new customer relationships in the sector in due course.”

Starcom (AIM: STAR), which specialises in the development of wireless, Internet of Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, is pleased to provide an update on the Company’s relationship with remote tracking (“Zero”).

Further to the Company’s existing arrangements with Zero, Starcom has on 13 February 2020 signed a Statement of Work (“SOW”) with Zero for the development of certain technology enhancements to the Starcom Helios units that are integrated within Zero’s motorbikes.

These enhancements will be supplied over the coming three months. The enhanced Helios units are intended to improve connectivity with the motorbikes, enabling Zero to centrally track and control a greater number of such motorcycles as it scales up production.

In return, under the SOW Starcom will be entitled to a small increase in the recurring SaaS revenues generated per connected motorcycle. The Board of Starcom believes that this SOW demonstrates the increased level of collaboration between the two companies, as well as Zero’s commitment to utilising Starcom’s solution.

Whilst the quantities of motorcycles incorporating the Company’s Helios units sold by Zero to date remains low, Zero has indicated to Starcom that it anticipates a significant increase in demand for the motorcycles in 2020.

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