Seeing Machines (SM) has signed a new agreement with Caterpillar (NYSE.CAT) that covers product development, manufacturing, licensing and distribution. The deal supersedes the previous four-phase agreement that SM signed with Caterpillar Global Mining in May 2013. It involves a US$17.5m fee paid over four years, along with ongoing royalties on product sales and services. The deal strengthens the group’s relationship with the US blue chip construction equipment maker, expanding the partnership into product development and across new sectors, including rail. We will review our forecasts following the final results in late August.
