Torotrak has received £3.75m from Allison Transmission Inc in accordance with the terms of its Licence and Exclusivity Agreement, signed in March 2009. This brings the total licence payments now paid under the Agreement to £8.44m.
The initial payments have provided Allison with non-exclusive licence rights over Torotrak’s full-toroidal traction drive technology in the medium-sized commercial vehicle market, together with options to secure global manufacturing and sales exclusivity in this sector, except for Torotrak’s existing licensees in this field.
Following this payment, Torotrak remains on course to achieve its target to break even on a profit after tax basis for the financial year to 31 March 2010.
Under the Agreement, Allison has further options to purchase, at a future date, a non-exclusive licence for Torotrak’s technology in relation to applications in large commercial vehicles and further options to secure worldwide exclusivity across the commercial vehicle market, except where companies have existing licenses with Torotrak.
Total additional fees payable to Torotrak could amount to a further £6.75m to £17.37m, payable over the next three years. This depends on when or if at all these rights are taken up by Allison, in which case no additional fees are payable.
Torotrak is the world’s foremost developer of full-toroidal traction drive technology. The company designs highly efficient continuously variable transmissions (CVT) and infinitely variable transmissions (IVT) to reduce energy consumption and harmful emissions. Its transmissions also deliver outstanding levels of functionality, performance and driving refinement. Torotrak develops main drive transmissions as well as variable ratio drive units for application in flywheel-based mechanical hybrid systems and for use as auxiliary drives.
Torotrak operates in the automotive, truck, bus, off-highway and agricultural markets, in motor sport and in the outdoor power equipment (OPE) market through its joint venture business, Infinitrak. Torotrak’s customers are widely spread across Europe, North America, India and Japan, and include major vehicle makers and tier-one transmission manufacturers.
Torotrak plc is fully listed on the London Stock Exchange.