The Brazilian subsidiary of Software AG has signed the biggest deal in the group's history with the largest bank in Brazil, Banco do Brazil – worth $63,7-million (152,6-million Real) over a four-and-a-half year period.
Nearly three quarters of the total is license revenue, to be booked over the contract period, with the rest for maintenance and services. For the current fiscal year this means total revenue of $13,9-million of which $10,3-million will be booked in the third quarter.
Software AG established a direct business relationship with Banco do Brasil in 2008, after ending the exclusive distribution contract between Software AG and its former local partner in 2007.
The Banco do Brasil contract strengthens the 2008 license revenue growth of the Software AG Group, forecast at 24% to 28%, at constant currency rates, and the groups EBIT margin forecast of 24%.