Software developer Syntonic (ASX: SYT) has signed up Aktay A.S. as a Turkish reseller for its bill-splitting service Syntonic DataFlex which allows businesses and their staff to share the cost of an employee’s mobile phone bill.
Newcomer Aktay has relationships with all the country’s major telecommunications companies and has agreed to be a non-exclusive reseller for the business analytics tool.
The one-year-old telecommunications services provider has agreed to commercialise Syntonic DataFlex through enterprise sales to business customers in Turkey.
Seattle-based Syntonic put the size of the smartphone market in the Middle Eastern country near Europe at 38 million smartphone subscribers.
As part of the first reseller agreement for the product, Aktay has promised to meet a gross revenue target of US$5 million (A$6.52 million), subject to a 50% sales commission between this calendar year and 2021.
If annual targets are not reached in a calendar year, family fund-backed Aktay must hand over the full amount for a period and wave its rights to a sales commission until it pays the minimum amount.
The target eligible gross revenue for this year and next is a combined US$1.25 million, which climbs to $1.5 million in 2020 and US$2.25 million in 2021.
Aktay will also make the product available to its customers in nearby Greece, Ukraine, Azerbaijan and the Republic of Cyprus.
Syntonic managing director and chief executive Gary Greenbaum said the agreement would fast-track market penetration for the Syntonic DataFlex product.
“We are delighted to expand our existing relationship with Aktay through this new commercial agreement,” he said in a statement this morning.
“The reseller contract highlights the growing commercial interest in Syntonic DataFlex and fast-tracks market penetration. The momentum we’re building with distributors is directly helping us with the aim of transforming the mobile industry, broadening the commercialisation of Syntonic DataFlex, and delivering value to enterprise customers, partners and shareholders.”
Syntonic’s market capitalisation hit A$33.92 million this morning, with 2.61 billion shares on issue.
Aktay chief operating officer Kaan Ketenci welcomed the deal with the company whose Australian operations are based in West Perth.
“We’re delighted in our partnership to bring Syntonic DataFlex to market,” he said in Syntonic’s statement.
“Syntonic’s enterprise solution is well positioned to successfully meet the growing employer demand of managing the costs and data use of mobile devices in Turkey’s workforce.”
If Aktay executes contracts with 10 companies by 30 June and another 20 companies by 30 September, it is eligible for a cash bonus.
Syntonic’s other partners include Tata Communications, on Tata SDX, the Tata Sponsored Data Exchange which includes the Syntonic Connected Services Platform and its Freeway Software Development Kit.
The company also partners with TecaPro on the Freeway mobile content product to expand its reach into in Vietnam, a nation with more than 45 million smartphone subscribers.
Syntonic securities were up 15.4% to 1.5c in mid-morning trade.