Cimco Marine AB (publ) has entered into an agreement regarding patent licenses with Seven Marine LLC and AB Volvo Penta
Cimco Marine AB (publ), the developer of the world’s first diesel outboard in the high power segment and consequently the world’s strongest real diesel outboard, has entered into an agreement with the manufacturer of the world’s strongest petrol outboard, the US company Seven Marine LLC, and AB Volvo Penta. The agreement primarily concerns the licensing of certain patents.
Yesterday night, Volvo Penta announced the acquisition of a majority share in the US company Seven Marine LLC. In connection with the acquisition, Cimco Marine, Seven Marine and Volvo Penta have entered into an agreement regarding certain patents.
The agreement concerns the licensing of international patents, where Cimco Marine gets access to Seven Marine’s entire portfolio of patented innovative solutions for large outboards. Seven Marine and other Volvo Penta - companies become entitled, by license, to use all of Cimco Marine’s patented solutions, except for Cimco Marine’s patented belt driven propulsion system, for the production of petrol outboards in all power segments and diesel outboards producing more than 400 bhp. No other compensation than the right to each other’s patents is payable by any party under the agreement. According to the agreement, the parties shall explore the possibility of a deepened collaboration.
Cimco Marine, that produces and develops diesel outboards for commercial and governmental use and whose business plan comprises engines between 100 to 400 bhp, welcomes the new agreement and hopes to increase the collaboration between the companies:
– It is very positive and fun when companies that, each in their way, are world leading on a world-wide market, can find ways to work together. Cimco is a small and relatively new company that during the last five years has developed several unique patented solutions and managed to produce the world’s first real diesel outboard in the high power segment, with approximately 800 contracted distributors throughout the world. Volvo Penta is a large, world leading, global supplier of inboards and complete drive systems for boats, that has approximately 3,500 distributors in more than 130 countries. It is of course under these actual conditions that the possibilities of a collaboration will be explored by the parties, says Andreas Blomdahl, chairman of the board of Cimco Marine.
– The agreement materially strengthens Cimco’s position in the segment for diesel outboards up to 400 bhp and our business case. Under the agreement, Seven Marine/Volvo Penta obtains neither any production licenses for that segment nor for our belt driven propulsion system, says Andreas Blomdahl.
For further information about the rationale behind Volvo Penta’s acquisition of Seven Marine and the collaboration with Cimco Marine, please refer to:
Cimco Marine AB (publ.), is obligated to make this information public, pursuant to the EU Market Abuse Regulation. The information was provided by the contacts below, to be submitted for publication on July 7th, 2017 at 7:30AM.
For further information, please contact:
Andreas Blomdahl, chairman of the board of Cimco Marine AB, tel. +46 706-28 01 30, firstname.lastname@example.org
Mats Säterberg, Advokatfirman Lindahl and member of the board of Cimco Marine AB,
tel. +46 702-79 73 94, email@example.com
Lars Sjögrell, head of public relations, Cimco Marine AB, tel. +46 702-69 53 00, firstname.lastname@example.org
Västra Hamnen Corporate Finance AB is Certified Adviser for Cimco Marine AB.
Cimco Marine AB (publ) has, after several years of development, constructed the OXE Diesel, the world’s first diesel outboard engine in the high power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. Cimco’s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.