ICT convergence company Azurn International (ASX:AZU) has arranged to set up a joint venture with its European distributor for its K2K and K2Call products.
The company has signed an MOU for the creation of the venture with Azurn EU, the exclusive distributor of Azurn products for the European market.
Under the arrangement, Azurn EU will pay Azurn $2 million for a 50% stake in the JV, which will be incorporated in the Isle of Man.
The unit will own the IP rights to Azurn's K2K collaboration software and K2Call unified communications product, but Azurn will retain the rights to develop and improve the IP for its own use.
Profits from the sale will be split 50-50 between the companies. The company will also have board member representatives from each company, with professional director Simon Blagden to take on the role of chairman.
The ultimate aim is to sell off the JV to a third party at a convenient time for at least $50 million, Azurn said in a statement. If the sale exceeds the minimum threshold it will be handled by Azurn EU.
Azurn in January arranged to purchase a 100% stake in Sydney IT product and service provider ThorSol in an all-stock transaction.
The company's CEO, Andrew Bonwick, resigned last month.