Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces that it has signed a non-exclusive distribution agreement with XLink Communications (Pty) Ltd (“XLink”) to distribute Cyan’s smart metering and lighting solutions as well as related Internet of Things applications in South Africa.

XLink currently manages Machine to Machine (“M2M”) solutions for over 68,000 businesses in Africa, facilitating 35 million M2M connections through the XLink Portal monthly. XLink, recognised by Frost & Sullivan in 2014 for its technology best practice in M2M, aims to be the market leader in the provision of wireless data M2M communication services and solutions throughout Africa and globally.

XLink will distribute Cyan’s smart energy communication technology, which enables the measurement and control of energy consumption for the metering and lighting markets, helping to increase energy security and reduce costs. In addition, XLink will provide technical, field-based system integration and technical support for the deployment of Cyan’s technology across South Africa. XLink are experienced in the deployment of infrastructure assets and associated projects for the energy, M2M and telecoms sectors.

The agreement includes an initial order for Cyan’s smart metering hardware and software, CyLec, for a 100 unit Proof of Concept project in South Africa. XLink’s technical support team will deploy this project in the first half of 2015, for a leading provider of energy management systems, to demonstrate and evaluate the benefits delivered by CyLec.

John Cronin, Executive Chairman of Cyan, commented: “We are pleased to be partnering with XLink to distribute and deploy our smart energy solutions in South Africa. XLink can offer customers the peace of mind of dealing with one company which provides integrated solutions for smarter energy. We believe that our technology will assist XLink’s customers in increasing energy efficiency through cost savings and a reduction in energy losses.”

Hymie Marnewick, Chief Commercial Officer of XLink, commented: “In South Africa demand is growing for smart energy solutions at the right price point. Cyan’s experience in next-generation economies makes their solutions ideal for the market. Cyan’s solutions will provide energy companies with the technology to support demand management, as well as enabling consumers to manage their energy consumption effectively.”

In August 2014, Cyan signed a partnership agreement with South African-based Dinsmore & Associates to pursue opportunities for Cyan’s solutions across sub-Saharan Africa. Sub-Saharan Africa is set for continuous economic growth over the next decade. In 2013, the US Trade & Development Agency forecasted that South African utility executives would spend $11 billion on grid modernization over the next decade*. The Board of Cyan believes that energy providers in sub-Saharan Africa are recognising the importance of understanding and managing consumption through electricity metering to ensure financial sustainability to underpin energy generation and network investment through improved revenue collection.

*http://www.ustda.gov/news/pressreleases/2013/US/SGT_ZakSmartGridOpps_111913.pdf