Company Name: Velpic
Announcement Date: 29/06/2016
Announcement Category: Contract/Partnership
Announcement Content:
Highlights
ďˇ First distribution partnership agreement secured with high growth business advisory platform provider Panalitix
ďˇ Single new distribution partnership has potential for current recurring monthly revenues to triple within a 12-month period based on conservative assumptions
ďˇ Agreement provides Velpic with access to an immediate 165 new customers and potentially 500 new customers in both Australia and the USA
ďˇ Multi-tiered sales strategy enables Velpic to generate revenue through direct subscription package with Panalitix and a reseller revenue sharing arrangement
ďˇ Accelerates Velpicâs market penetration into the SME sector in Australia and internationally
Velpic Limited (ASX: VPC) (âVelpicâ or âthe Companyâ) is pleased to advise it has entered into an agreement with business advisory software provider, Panalitix, in the Companyâs first distribution partnership arrangement, accelerating Velpicâs market penetration into the SME sector in Australia and internationally.
Panalitix is a groundbreaking cloud software solution, created by successful entrepreneurs Rob Nixon and Colin Dunn that delivers business advisory tools for accountants. It automates the marketing and delivery of advisory services by overlaying and drawing data from MYOB, Xero and Intuit accounting software systems. Armed with the real time data, Panalitix then provides accountants with access to over 130 hours of eLearning courses to give them the tools to help their clients improve their business, as well as improve their own accounting firm and training their team members.
The distribution partnership employs a multi-tiered sales strategy that will see Panalitix become a distributor of Velpicâs eLearning platform to its member accountants. These
members will then become resellers of the eLearning platform to their own clients.
This single distribution partnership provides Velpic with the potential to triple recurring
monthly revenues with exposure to a multitude of SMEs. It also demonstrates the high growth potential for the Company to rapidly increase its SME client base with the addition of only a few strategic partnerships.
Panalitix currently has over 400 clients in Australia and New Zealand and a further 300 in the US, Canada and the UK. Based on current growth forecasts, Panalitix expects its
customer base to reach 1,200 firms by 31st December 2016 bolstered by its ongoing drive into the US market.
The Panalitix distributor partnership is a proto-type of the distributor partnerships the Company intends to establish in different geographies and industries. This will transform
these partners and allow them to create new revenue streams for their own businesses as well as their clients.
Velpic will generate revenues through a new monthly subscription fee for Panalitix as well as a revenue sharing arrangement where Panalitix will resell Velpic to their clients, accounting firms, and then these accounting firms will then further resell Velpic to their clients, SMEs.
Assuming a conservative 5% potential take up of the Velpic platform through this distribution partnership arrangement, the Company estimates an approximate 200% increase in current recurring monthly revenues within a 12 month period.
Commenting on the partnership, Panalitix founder and CEO Rob Nixon said:
âWe believe that Accountants are the natural trusted advisor. Nearly every small business in the world is connected to an Accountant in some way. When Accountants have access to the real time information and the correct education they can make a massive difference to their
clientâs condition.
âWeâve been working with Accountants all over the world for 20+ years and we know how they operate and how to help them. They can be the gateway to business success. Our intention is to use our extensive global reach and help them train their clients.
âWith the Velpic e-learning platform and our training content, we can distribute business improvement training programs direct to the Accountants without the Accountant doing a thing.â
Velpic Chief Executive, Russell Francis, commented:
âWe are very pleased to be working with Panalitix as the Companyâs first distribution partner, and we believe the eLearning platform will be extremely complementary to Panalitixâs business advisory cloudware and to its clientsâ operations.
âThe distribution partnership also marks significant progress in the evolution of Velpicâs reseller partnership channel and clearly demonstrates the high scalability of Velpicâs platform to accelerate growth in its client base, thereby achieving a key growth initiative.
âThe new Panalitix distributor partnership will become the blueprint for many other partnerships in different geographies and industries, all using the Velpic platform to create
new revenue streams for their own businesses and their clients.
âAs part of the international expansion strategy, Velpic is increasingly focused on partnership
reseller arrangements and we will look to replicate this arrangement with other distributors in
the near term.â
Announcement URL: http://www.velpiclimited.com/investors/asx-announcements/2016.html
About Velpic:
Velpic - Video eLearning Platform In the Cloud
Online learning is easier than ever with Velpic, a powerful training solution for companies of all sizes and industries.
In a single tool, Velpicâs new cloud based platform allows you to create and edit your own impactful video lessons in-house, play your lessons online and finally, as an administrator, you can track, manage and schedule all your company online training and inductions.
Velpic has proven to dramatically reduce the time and costs to train and induct staff while improving comprehension and retention of the subject matter. Our online training software utilises a visual, interactive approach to learning; through smart quizzes and high quality videos, you can maximise each lessonâs impact.
Everything you need to empower your workforce, in one platform â Velpic eLearning.
Go to Company Profile for: Velpic
Announcement Contact: [email protected]
