Financial software developer Reckon Limited (ASX:RKN) has signed a new partner for UK subsidiary Billback Systems UK.
The company intends to replicate the JV model it has been following in the US, and use Billback Systems UK to distribute software co-developed by Reckon and nQueue Inc.
To facilitate this, Reckon has swapped 25 per cent of Billback in the UK to nQueue Inc for seven per cent of its interest in the US business. Reckon now has a a 74 per cent share in the US venture and nQueue has 26 per cent.
As part of the deal, Billback Systems UK will change its name to nQueue BillBack.
It will market the cost recovery and cost management products developed by both Reckon and nQueue over the last 18 months.
While the financial terms of the deal were not disclosed, Reckon said the transaction was not big enough to impact its expected performance for FY11.
Reckon group CEO Clive Rabie said it makes sense to replicate the successful model followed in the US for the UK market.
RKN shares ended Tuesday's trading 0.4 per cent lower at $2.470.