Datasonic in exclusive deal with DSWLL

Auto gate and facial recognition machine at Datasonic Manufacturing Sdn Bhd. - RAJA FAISAL HISHAN/The Star.(Filepic)

PETALING JAYA: Datasonic Group Bhd has entered into an exclusive agency agreement with Dynamic Structures WLL (DSWLL) in Bahrain to jointly develop and coordinate business activities relating to secure identification, personalisation solution, integrated security and surveillance system across 18 countries.

According to a Bursa Malaysia filing yesterday, Datasonic will also establish a legal presence in the form of an official regional office to undertake all its activities in the 18 countries, which are Bahrain, Saudi Arabia, Qatar, Kuwait, the UAE, Oman, Yemen, Iraq, Syria, Lebanon, Turkey, Egypt, Sudan, Djibouti, Libya, Morocco, Algeria and Tunisia.

“The exclusive agency agreement will be valid for five years from the date of signing of the agreement, unless the parties mutually agree in writing with one month prior notice for either extension or termination,” it said.

Datasonic is currently the biggest security-related ICT company in Malaysia with export capabilities.

The exclusive agency agreement marks Datasonic’s strategic move to expand its business internationally, in line with the group’s mission to transform itself into one of the top security-related ICT companies in the world.

The business development activities in the 18 countries, if successful, will contribute positively to Datasonic’s future revenue and profitability.

The salient terms of the exclusive agency agreement state that the remuneration of business development activities to DSWLL is under a 50% profit margin share with Datasonic, to be paid as per the main contract payment terms and to be settled immediately upon receipt of money by Datasonic.

Datasonic has agreed to provide full funding for the formation of the regional office.

In addition, Datasonic will undertake the full financial responsibility with regard to the rental of an office location, company registration fees and salary of a representative who is commercially and technically knowledgeable to coordinate all activities of the branch office in the territory.

On the other hand, DSWLL will settle all government fees at the expense of Datasonic, plus a service charge to DSWLL.