Bradford, West Yorkshire-based Microvitec Plc and Electrohome Ltd of Canada have climbed into bed for the second time with a 10-year manufacturing and marketing agreement said to be worth UKP8m per annum. The two companies had an agreement last year, but the relationship collapsed when they couldn’t agree on the profit split (CI No 1,443). Under the terms of the new agreement, to be phased in over the next six months, Microvitec will manufacture the colour and monochrome monitors sold by both companies, something not included in the original agreement. All sales in North and South America will be handled by Electrohome while European marketing and distribution will be handled by Microvitec. Microvitec says that this relationship is more advantageous and closer to what the original agreement should have been. Issues like profit split and the costs of research and development have been addressed, although Microvitec is unwilling to provide specific detail. Since Electrohome is to handle all American sales, Microvitec Inc will be prohibited from marketing monitors, and will focus on terminals and the company’s new multimedia products.
