LONDON (ShareCast) - (ShareCast News) - Tribal Group announced on Thursday that it has acquired the intellectual property rights and exclusive distribution rights for the Wambiz private social network solution to the education markets across the UK, Australia and New Zealand from Wambiz Limited.
The AIM-traded firm said it would also have the non-exclusive rights to sell the solution into Canada.

It said the acquisition was an important step in Tribal's product strategy, delivering a social network solution that would be integrated into its new student information framework, driving a single engagement solution for students.

The initial consideration for the acquisition was £1.25m, with further non-contingent consideration of £289k and £485k payable at the end of years one and two respectively.

Completely at Tribal's discretion, if in years two to five Tribal decides to sell the product into schools and work-based learning customers, it would have to pay away 30% of net revenue from those markets to Wambiz.

In years four and five that pay away would be capped at £625k and £525k respectively.

Wambiz would be novating 34 existing customer contracts to Tribal.

The asset value of those contracts and the IP to be included in Tribal's accounts was expected to be approximately £2m.

Tribal said it could not accurately calculate the profit attributable to the contracts as Wambiz did not allocate cost per contract.

"We are pleased to be able to fully integrate the Wambiz solution, which is already proven at education institutes in both higher and further education, into our new student information framework and look to providing our customers with exceptional support and even more innovative solutions as we move forward," said Tribal managing director of product and development Barbara Staruk.

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