EYEONID GROUP AB (publ): Signs agreement with ERGO Innovation Solutions GmbH
EyeOnID have today signed an agreement with ERGO Innovation Solutions GmbH for distribution and sales in the German market. ERGO, which is part of the German insurance group ERGO Group, intend to make its first launch in April 2020 with in the German market, this will further strengthen the position in Europe for EyeOnID.
Background
As previously communicated in the LOI from 10th of September 2019 and with the order confirmation from 25th October 2019, ERGO Innovation Solutions GmbH (”ERGO”) has today signed an agreement for commercial launch in regards to EyeOnID’s services for ID-monitoring together with the additional 360°-modules services. The plan was initially for a new agreement as well as a launch to be finalised during the end of last year but have been delayed due to reasons outside of our control.
Description of ERGO
ERGO Innovation Solutions GmbH is part of one of Germanys largest insurance company ERGO GROUP AG which is owned by Munich Re, one of Europe’s largest reinsurance companies. ERGO has a large base of end consumer within the insurance market both inside and outside of Germany. Germany alone stands for more the 20 million end customers. ERGO Innovation Solutions GmbH was started to by the group CEO to speed up development and access to innovations and 3rd party services driving the Insurance business for the group with a faster time to market. Something that is often is a big challenge for many large insurance companies with long development and IT cycles. Under the brand innosure.me ERGO develops new services and offerings that are sold and distributed through their own developed digital platform towards end consumers in the German market.
The parties intention with the agreement
ERGO will use the products from EyeOnID as addon services (Value Added Services) to build new revenue streams and act as complement to current and new offerings supported by ID-monitoring driving relevance for ID-security insurance solutions as a starting point. This will also on a recurring basis drive interaction with end consumers to drive loyalty for the current customer base. The agreement means that EyeOnID further will strengthen its position in the insurance industry with ERGO, being a market leading insurance group, as a great reference case in the market.
Impact from the agreement
The offering shall be possible to sell free standing as well as bundled within different insurance products such as home insurance. Furthermore, ERGO will act as a distributer in Germany under its own brand Innosure.me. The agreement is built to scale in volume as well as for new services and functions and provides great flexibility regarding variations of packages towards different target groups and channels. ERGO will also directly refer to and take support from EyeOnID’s brand and expertise within the domain.
How we create an attractive service
Initially a so-called soft launch will be made towards specific target groups and end consumers in the German market. The Launch will be done as a white label solution with EyeOnID’s ID-monitoring service and self-develop portal adapted for the German market. Furthermore, EyeOnID will provide marketing and communication support. The packaging is made in order to evaluate the markets perception of the functionality, value and price. In the next step integration with different insurance solutions is going to be possible and we estimate that to take place first after Q3.
Expected outcome
This is a very important strategic agreement for EyeOnID for future development of different integrated solutions including such as insurance solutions which will strengthen EyeOnID’s position as an ”enabler” for ID monitoring services even further. The initial value is estimated to be 700 000 SEK split over one-time fees for the start-up of the solution and recurring service fees. Followed by license-based income from end users when the service is widely launched. We see that this partnership has potential to create increased recurring income over time for EyeOnID.
Terms and time plan
The agreement terms are 12 months with automatic prolongation with 1 year at a time, launch for the German market is planned to be during April this year.
” I’m very happy that we have managed to connect such a large partner as ERGO to the customer base of EyeOnID. For me this is proof that the market is getting more and more mature which means that we will be able to drive business with shorter and shorter lead times ins sales and delivery. The agreement also shows a great trust in EyeOnID as a provider for one of Europe’s largest markets. In spite of the difficult times for many businesses we see that we can drive business forward and that the market matures gradually, “says Patrik Ugander CEO for EyeOnID Group AB (publ)”.
For more information
Patrik Ugander, CEO, Eyeonid Group AB (publ.)
Phone: 070-544 01 68
Email: patrik.ugander@eyeonid.com
www.eyeonid.com
Eyeonid Group AB (publ) was founded in 2015 and is a SaaS provider who through their self-developed technology for collection, analysis and packaging of data, develop and sell smart solutions that makes life on internet simpler and more secure for people, corporations and organizations. Through end to end solutions that are supplemented with insurances, payment solutions and assistance as well as sales and marketing support for industries such as Bank, insurance, Telecom and Retail, EyeOnID solutions create new business opportunities for its customers.
This information is information that Eyeonid Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was provided, through the contact of the above contact person, for publication on April 14th 2020, at 15.51 CET.
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