Further to what was previously communicated on April 18, illimity Bank  S.p.A. (“illimity” or the “Bank”) confirms that today the detailed contracts were signed in execution of the binding commitments undertaken (long form agreement) with the Engineering Group, with which the agreements already communicated are confirmed. 

The signing of the final detailed contracts establishes the long-term industrial partnership between illimity and the Engineering Group - leader in digital transformation processes for businesses and Public Administration and with relevant expertise in the financial services sector – concerning the technology platform developed by the Bank. The agreement:  

- is the natural evolution of a collaboration that recognises the illimity platform as one of the  most innovative, fully digital, modular, and "cloud native" platform on the market today, thanks  also to Engineering's contribution over time; 

- offers the entire market state-of-the-art solutions designed also for large operators  interested in digital native solutions and immediately deployable in proprietary, licensing or "as  a service" solutions in high-potential segments; 

- sets the stage for a long-term relationship that will provide illimity with solutions, expertise  and business support to compete in an industry where the ability to manage Digital is key; 

- enriches Engineering's offerings portfolio with advanced Digital Banking solutions in the  Small Business and Retail Banking segments, as well as in the end-to-end management of portfolios of Non-Performing Loans or Unlikely To Pay Loans. 

It should be noted that the agreement provides for a consideration of 55.5 million euro for illimity, which will be booked by the Bank in the second quarter of 2023 and paid in tranches over the 2023- 2026 period, to which an additional 4.5 million euro may be added in the period 2024-2032 in return for further platform upgrades provided by illimity that Engineering has the option to acquire.  

The agreement also entails the payment by the Engineering Group to illimity of a predetermined royalty structure on the results that will be realized by Engineering through the offer to other  operators of the platform, as well as the exclusivity for Engineering in marketing for the period 2023- 2032, a period that may be further extended.  

Recalling what has already been communicated, with the finalisation of the detailed contracts, a  service agreement for professional services provided by the Engineering Group to illimity, illimity  Group companies, or, in general, the illimity ecosystem, was also signed, for 15.6 million euro per year (plus VAT) for the period 2023-32; these represent part of the investments and expenses for the provision of IT services already planned by the Bank in the coming years, and partly already comprise services provided by companies part of the Engineering Group.