JNC TECHNOLOGIES GROUP EXECUTES BINDING RESELLER AGREEMENT WITH INTELICARE AND FIRST SUPPLY AGREEMENT TO DEPLOY INTELICARE TO HARDI AGED CARE
- InteliCare executes binding Reseller Agreement with JNC Technologies Group (“JNC”) to deploy the InteliCare platform to JNC client Hardi Aged Care (“Hardi”);
- Hardi is a private family-owned Aged Care business which owns six residential aged care facilities currently caring for approximately 600 residents;
- Contract value is expected to be $1.8 million in hardware implementation and on full deployment will generate in excess of $0.5 million in annual recurring SaaS fees with an initial term of 3 years, representing InteliCare’s largest commercial deployment to date;
- JNC holds a strong presence in the aged care sector via its various software platforms across their group;
- The Agreement with JNC is validation of InteliCare’s commercialisation strategy beginning to be executed upon along with JNC’s commitment to deliver reliable and proven in market software solutions to the Aged Care and NDIS sectors;
- This Agreement is also a validation of ICR’s ability to execute on agreements with potential partners and convert sales opportunities into meaningful deployments (see announcement on 30 August 2023);
- Leveraging the InteliCare platform also accelerates JNC’s commitment to deliver Aged Care providers with best in class and actionable information for greater effective care management.
InteliCare Holdings Ltd (“ICR” or the “Company”) (ASX: ICR), an Australian software company commercialising its proprietary AI driven InteliCare platform (“InteliCare”) in the aged, disability and health care sectors is pleased to announce it has entered into a binding Reseller Agreement (“Agreement”) with JNC Technologies Group Holdings Pty Limited (“JNC”).
JNC is a software business specialising in data aggregation and building software and algorithms to address specific industry challenges in the aged care and NDIS sectors. JNC has a number of market leading software solutions in the aged care sector specifically focused on governance, risk and compliance, aged care quality standards, and aged care consumer care environments.
This is a significant moment in ICR’s commercialisation strategy, as this Agreement is the first commercial agreement that ICR has signed of such magnitude, being the largest deployment of the InteliCare platform in the Company’s history. It also represents a noteworthy achievement in ICR’s movement towards a Reseller / Channel Partner focus as a substantial revenue generation opportunity.
The Agreement provides the commercial terms on which JNC will offer the Habitat+ platform as ‘Habitat+ powered by InteliCare’ to its clients. The Agreement is for an initial term of three (3) years, with 12-month extensions for the deployment of InteliCare. The Agreement will generate revenue for the Company through Hardware and Application Software Fees, Installation Fees and Services Fees, as well as the prospect for additional Professional Services Fees if requested by JNC. Under this Agreement a revenue share model has been established between ICR and JNC, whereby ICR will retain 66.67% of the margin generated from the hardware reselling fees and application software reselling fees and JNC will receive 33.33% of the margin generated.
ICR & JNC have now completed execution of the first commercial agreement (“Initial Agreement”) to deploy ‘Habitat+ powered by InteliCare’ at Hardi Aged Care (“Hardi”), with locations across Greater Sydney.
Hardi has agreed to implement ‘Habitat+ powered by InteliCare’ into each of its six residential aged care facilities as part of its commitment to continually improve the care provided to its residents under its services. This deployment will begin in early 2024 and be a phased rollout over an anticipated 6 month period.
Daniel Pilbrow, InteliCare CEO, says: ‘’I am delighted to have entered into this agreement for the Company’s first client with JNC and look forward to deploying Habitat+ powered by InteliCare in Hardi’s aged care facilities. I believe this is the start of a long and fruitful partnership between InteliCare and JNC.
JNC is an ideal corporate partner for InteliCare as we seek to execute our commercialisation strategy. One element of the strategy is to seek strong commercial partners. JNC has a very strong network in the aged care industry with customers seeking monitoring and predicative analytics solutions to deliver proactive care within their communities. We are excited by the pipeline of commercial deployment opportunities within the JNC group and we look forward to reaching agreements with other clients in JNC’s network.”
Jason Buckley, CMO from JNCTech says: “We are fortunate to be working with like-minded partners at both Hardi and InteliCare who share our vision to leverage innovation and technology to deliver better care solutions in aged care. Collaboration provides immense promise for our organisations and marks a significant milestone as we combine InteliCare’s robust software with JNC’s platforms with Hardi’s strong family-based values in aged care. We look forward to accelerating better outcomes for care providers, care workers, and those in need of care via our shared commitment to advancing aged care through innovation.’’
Jo Dalton, Hardi Aged Care GM, says: “I am surrounded by a terrific group of people here at Hardi and am proud of our willingness to embrace innovation and technology to provide better care for our residents. From our CEO Rob Oxford and management team through to our Facility Managers and frontline care teams, it is in our DNA to relentlessly work to identify better ways for better care and we feel we have great partners in this journey with JNC and InteliCare. We are looking forward to the improvements in the prioritisation and predictive care management we are anticipating with our investment from this agreement. With this deployment being the first of its kind across the Australian aged care sector, we are excited for what we can achieve both now and in the future through greater effective care management better enabled via new technology.”
About the Reseller Agreement
The Agreement with JNC sets out the terms and conditions for a reseller agreement between both companies. The purpose of the agreement is to deliver technology, software services and platforms to Hardi’s aged care facilities.
Headline terms for the Reseller Agreement with JNC and Supply Agreement to Hardi:
- Habitat+ powered by InteliCare platform to be deployed in Hardi Aged Care facilities.
- Three-year initial term, with an option for a 12-month extension.
- A margin share arrangement has been agreed with InteliCare receiving 67% of the margin generated and JNC 33%. The margin share covers Hardware reselling fees and Application Software reselling fees.
- Total expected Hardware implementation fees of $1.8m.
- Total annual SaaS fees once deployment of Hardware is completed are expected to be $500k per annum.
- Phased roll-out with final specific site costs confirmed before each site implementation commences.
- Timeline for deployment expected to be completed over 6 months from the beginning of 2024.
- Following successful deployment within the Hardi Aged Care facilities, the Parties intend to enter into a framework reseller agreement for future customers (Framework Agreement).
Approved for Release by the Board of Directors