County Durham tech firm Kromek has received a $5m payment as its second installment under an agreement with Siemens Healthineers.
The Sedgefield based business, which specialises in solutions for the advanced imaging and radiation detection markets, announced the “transformational” deal with Siemens Medical Solutions USA Inc in January, which involves the supply of knowledge, intellectual property, and equipment, which would generate $37.5m (£30.1m), including $25m (£20.1m) in the current year.
Directors hailed the agreement as it would push Kromek into profitability this year. Now the NETPark company has received $5.0m as the second payment installment under its Enablement Agreement with Siemens, following the successful delivery of certain milestones by Kromek as part of the deal.
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Including this payment, the company has received $30.0m to date and the remaining aggregate payments of $7.5m are payable over the next three and a half years, with the third installment expected to be received in the financial year to 30 April 2027.
Arnab Basu, Chief Executive Officer of Kromek, said: “We have continued to successfully deliver on our commitments under our landmark multi-year agreement with Siemens Healthineers, which is progressing as scheduled. To date, we have received a total of $30m, which is transformational for our business. Alongside supporting the delivery of various milestones under the agreement, it will significantly strengthen our balance sheet and provide a robust foundation for sustainable growth.”
The announcement comes a week after Kromek announced it had secured a £1.7m contract from the Government to supply radiation detectors that will help protect the public from nuclear threats. The deal is part of a four-year programme to upgrade the 海角视频’s radiological and nuclear defence capabilities.
The contract will see Kromek provide its D3S-ID wearable radiation detectors, which can be used by police officers, border forces and emergency responders to quickly identify radioactive threats in public places. The agreement also includes ongoing training and product maintenance.
Kromek’s wearable radiation detectors are already in active use around the globe, having been used by Nato troops in Ukraine and at high-security events.