22 May 2008 -Syscap Limited (http://www.syscap.com), the UK’s leading independent finance provider, announces the launch of a new service that enables independent software vendors (ISVs) and companies who have developed their own software in-house, to finance the intellectual property rights (IPR) of their software. IPR funding is a radical new concept, which allows companies to realise the value of an asset that has not traditionally been financeable. The proceeds can then be used to support upgrade programmes and grow other areas of the business.
Under the IPR Funding Programme, Syscap purchases the IPR for an agreed amount and licenses it back to the company for a monthly fee, over an agreed term. At the end of the agreement, the company is given the option to recover ownership of the software. In the meantime, the company receives a cash injection to enable it to develop further software or invest in business growth. By partnering with Syscap, ISVs also have the option of using the released capital to fund a subsidised software upgrade programme.
Philip White, CEO of Syscap, says: “Software developed by an ISV will always have a finite useful working life, so, over time, a need will arise to move customers onto a new release or platform. Syscap works with ISVs to help with legacy system transition, by not only acquiring IPR and licensing it back, but by offering subsidised finance to make it very attractive for customers to upgrade. This incentivised method helps ISVs transition their customers onto the same product and support contract, more quickly, resulting in business efficiencies and cost savings. The end-user customer benefits by getting access to the new features available with the new release or platform, and the ISV benefits from a longer-term customer commitment.
“The Office of National Statistics estimated that the economy grew by £8bn as a result of in-house software development during 2007,” adds White. “Lots of companies invest large sums of money in their in-house software development. This ties-up cash that could be more profitably used elsewhere.”
Syscap is the UK’s leading independent IT finance provider. Syscap works directly with clients and in partnership with industry-leading IT vendors, equipment suppliers, ISVs and other business service providers. Through tailored, innovative finance solutions, Syscap enables commercial, professional and public sector organisations of all sizes to acquire the business assets and resources they need, without traditional budgetary constraints.
Founded in 1990, Syscap now employs over 110 people across the UK and Europe, has annual revenues in excess of £160 million and £350 million of assets under management.
For further information, please contact:
Lindsay Back/Ben Bush
Tel: 020 7749 4400
Email: firstname.lastname@example.org / email@example.com
Chief Executive Officer
Tel: 020 8254 1800
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