IBA Health Ltd has signed a global software licensing and development deal with Eastman Kodak Company which will earn the healthcare information business more than $50 million over the next five years.

Under the agreement, IBA will license software for medical information technology applications to Kodak's Health Imaging Group.

Kodak's Health Imaging Group develops, manufactures and markets intelligent imaging products and provides medical-imaging services.

The contract involves IBA's software being fused with Kodak's image and information solutions to create applications for medical customers including hospitals, imaging centres and private practices.

IBA will license the software exclusively to Kodak for five years to be used in all worldwide markets except Australia, New Zealand and most of Southeast Asia, where the company competes.

For the first five years, the health technology group will receive royalties from sales of Kodak products incorporating the software.

After the sixth year, IBA will retain rights to the software in Australia, New Zealand and its south-east Asian markets and transfer ownership to Kodak for the rest of the world.

Sydney-based IBA said today the agreement should add at least $9 million to its after-tax earnings for 2005 and 2006.

The health technology group said the contract would guarantee it $7 million per year in royalties over the next five years, with upside potential based on sales volume.

Kodak will also pay IBA $2.5 million per year over two years for services provided in product development and related areas.