Marketing technologies solutions provider Wireless Ronin Technologies Inc. and outdoor, LCD-based digital signage display systems manufacturer Delphi Display Systems Inc. have entered into an exclusive licensing and services agreement to provide integrated technology solutions to the quick-service restaurant and "pump topper" gas station markets.
Under the terms of the agreement, Wireless Ronin granted Delphi an exclusive license to use and sublicense its RoninCast 4.0 HTML5-based software in the QSR and pump topper target markets. Delphi will market and sell the end-to-end customer engagement solutions exclusively to the QSR and pump topper markets as part of its Insight Engage technology platform.
In consideration for the exclusive license, Delphi will pay Wireless Ronin a minimum of $2 million over five years, $750,000 of which to be paid within two days following execution. Delphi will use Wireless Ronin's 24/7 network operations center exclusively to host Delphi's digital signage applications, which will provide Wireless Ronin recurring hosting and maintenance revenue over the next five years. Wireless Ronin and Delphi have also mutually agreed to not compete with each other within and outside the target markets. Each party has agreed to refer prospective customer opportunities outside its own exclusive markets to each other to leverage the relationship.
Delphi intends to integrate Wireless Ronin's latest RoninCast software technology with Delphi's Insight Engage drive-thru technology platform to provide a full service, end-to-end customer engagement solution in the QSR and pump topper markets. The solution will be designed to address the needs of Delphi's global installation base of more than 30,000 customers, including large franchisees of major QSRs, as well as Wireless Ronin's current pipeline of potential customers in the QSR target market.
The fully-integrated solution will include interior and exterior digital menu boards, order confirmation, wireless communication systems and timing systems, along with cloud-based software to manage these functions and deliver performance metrics.
Wireless Ronin will provide content management and delivery, enterprise-wide real-time data aggregation, analytics and reporting, as well as integration with point of sale, mobile devices, social media and customer loyalty programs. Delphi said it also provides integrations with virtually every common POS platform as a key part of its business.
"This agreement marks a major strategic shift for Delphi, as we transition from an outdoor digital signage hardware provider to a world-class enterprise solutions company focused on delivering high-value, tightly-integrated hardware and software solutions to the QSR and pump topper markets," said Ken Neeld, president and CEO of Delphi Display Systems, in the announcement. "We evaluated many software technologies and chose Wireless Ronin because of the robust capabilities of their well-architected platform that leverages the latest HTML5 technologies. We also share a similar vision for engaging our end-customers with a true omnichannel experience."
Scott W. Koller, president and CEO of Wireless Ronin, said the combination of Delphi's expertise, products and services with Wireless Ronin's RoninCast software and network operations center will provide the QSR and gas pump sectors with a comprehensive technology solution specifically designed to address their digital signage and menu board requirements.
"This relationship not only makes a comprehensive solution available to Delphi's existing customer base and pipeline, but also generates recurring revenue from hosting and maintenance," Koller said. "Further, it allows us to leverage Delphi's extensive sales and marketing efforts, enabling Wireless Ronin to focus our resources on our growing pipeline of opportunities in the automotive, retail, food service and fast casual markets."
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