VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2012) -Webtech Wireless Inc. (TSX:WEW) ("the Company"), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, today announced that it has entered into an agreement to re-acquire all of the NextBus Inc. related Intellectual Property and technology rights previously granted to NextBus Information Systems ("NBIS").
At the time that the NextBus Inc. business was acquired in 2005 certain rights related to the NextBus Inc. business were licensed back to NBIS, a company created by the founders of NextBus, pursuant to the terms of a Franchise Agreement. The Company and NBIS have been involved in an arbitration process regarding the interpretation of the rights under the Franchise Agreement since early 2011. The agreement announced today resolves all outstanding disputes between the parties.
Under the terms of today's agreement, NextBus Inc. will acquire all of the rights held by NBIS under the Franchise Agreement as well as certain related assets; in exchange the Company will pay NBIS US $900,000 upon execution of the agreement and make a further payment of up to US$2.1 million not later than December 31, 2013.
"Acquiring these assets and rights makes the NextBus business more valuable for our shareholders. Settlement of the ongoing dispute not only saves us the time, expense and distraction of an extended legal dispute but also allows us to re-engage with interested acquirers of NextBus Inc. a process we put on hold while we worked to resolve this matter," said Scott Edmonds, President and CEO of Webtech Wireless.
About Webtech Wireless®
Webtech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: automatic vehicle location (AVL), mapping, vehicle diagnostics, CO2 reporting, navigation, messaging, and mobile resource management. The Company serves customers of all sizes in the transport, government, service, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant®
commercial fleet solutions, InterFleet® solutions for government, and NextBus® real-time passenger information services for transit fleets. For more information, please visit www.webtechwireless.com.
All amounts in Canadian dollars (CAD$) unless otherwise noted. Trademarks are the property of their owners.