SimCorp EMEA Signs non-binding Term Sheet with State Street Bank International GmbH
Company Announcement no. 38/2020
SimCorp EMEA and its current client State Street Bank International GmbH have today signed a non-binding Term Sheet setting out the main terms for entering into a strategic business partnership between the parties. The intention being to form a business partnership to provide a premier, fully integrated, front-to-back investment outsourcing solution for insurance firms in Europe, Middle East and Africa (EMEA).
If and when the Term Sheet translates into a final strategic agreement, such agreement will become a "large contract" and SimCorp will disclose a company announcement about this.
If the Term Sheet as expected translates into a final strategic agreement in 2020, SimCorp expects to report revenue growth and EBIT margin measured in local currencies for 2020, at the higher end of the financial outlook range announced in its Q2 2020 interim report: Revenue growth measured in local currencies is expected to be between -5% and 5%, and the expectation for EBIT margin measured in local currencies is between 22.0% and 27.0%. This is primarily due to the fact that a final strategic agreement is expected to include a conversion from the existing perpetual license agreement with State Street, to a new subscription-based license agreement with up-front revenue recognition of the license part.
For more information on the strategic partnership, reference can be made to the joint press release, which will follow this company announcement.
Enquiries regarding this announcement should be addressed to:
Anders Hjort, Head of Investor Relations, SimCorp A/S +45 3544 8822
Mittal Shah, Head of PR, SimCorp +001 (646) 843 1707