In line with its strategy to help seniors live independently in their homes for longer, aged care technology provider HomeStay Care (ASX: HSC) has inked a deal to become the exclusive reseller of Essence APAC’s ‘smart living’ solutions in Australia, New Zealand and Singapore.
Essence APAC is the Asia-Pacific distribution arm of private Israel-based technology company Essence Security International.
It is the owner and licensee for a suite of healthcare-related technology such as discreet personal emergency systems and motion, magnetic and thermal sensors that analyse activities of daily living.
HomeStay currently uses the company’s technology in its Intelligence Home platform, particularly the home monitoring sensors and emergency pendant that detects movement (or lack thereof) in the home and provides access to emergency services through a hub and call centre.
Essence APAC’s products also interface with the HomeStay platform to provide daily dashboard reporting and connectivity to family and carers.
Under a signed binding heads of agreement announced today, HomeStay has been given the exclusive right to market, distribute and sell all Essence APAC healthcare-associated hardware, software solutions and peripherals.
The company said the deal will potentially result in a near-term step up in revenues due to existing and pipeline Essence APAC revenues transferring to HomeStay from 10 July onwards.
For the 2019 fiscal year, Essence’s healthcare solutions generated $1.94 million in revenue from health, aged care and disability sectors in the Asia-Pacific region.
HomeStay chief executive officer Philippa Lewis said the reseller deal was a “strategic opportunity” that would “provide the foundation into new markets as well as potential revenue growth”.
“The demand for our technology is growing and our relationship with Essence APAC is pivotal in securing expanded footprint across the multiple verticals,” she said.
“This agreement will further our objective to provide greater choice to our customers who seek smart-care solutions, that make a meaningful impact on their safety, wellness and independence,” Ms Lewis added.
Essence APAC managing director Graham Russell said the deal would bring a greater level of support to his company’s existing resellers and clients, as well as offer them access to HomeStay solutions.
“We look forward to expanding our sales and marketing reach to allow more elderly and disabled people to live independently in their own home for longer,” he said.
Under the terms of the agreement, HomeStay will pay Essence APAC a 4% royalty on all sales generated.
In order to retain exclusivity, it will also be required to buy a minimum of US$1 million (A$1.42 million) per annum of Essence Group hardware products during the three-year term.
By mid-afternoon trade, HomeStay shares were sitting up 16.67% at $0.021.