Automotive transmission company Torotrak plc have received £8.44 million from Allison, a US-based manufacturer of truck transmissions. According to the press release, the payments have provided Allison with non-exclusive licence rights over Torotrak’s full-toroidal traction drive technology in the medium-sized commercial vehicle together with options to secure global manufacturing and sales exclusivity in this sector (except for Torotrak’s existing licensees in this field). The payments were made as part of a deal under which Allison also paid £2.4 million to acquire 10% of the previously issued share capital in Torotrak.
Recent financial reports suggest that neither company has made a profit this year. The licensees’ investments should ensure that the companies are able to provide the licensees with any technical support they need in order to successfully bring the licensed technologies to market.