First Derivatives plc announced that it has signed a Memorandum of Understanding with Utilismart Corporation. The MOU is expected to lead to an agreement to use the Group's Kx technology for sensor analytics in conjunction with Utilismart's suite of smart grid software applications, to support the management of Utilismart's customers' meter and sensor data, including data collection, processing and analytic services for engineering, operations, customer service, metering and billing. Under the proposed agreement, FD will provide the Kx technology and related infrastructure to complement Utilismart's existing solution.

This will significantly enhance Utilismart's ability to serve this high growth segment immediately and keep pace with new customer demand related to the Internet of Things connected to utility infrastructure. It will be delivered as a Cloud-based solution and is expected to be installed by third quarter of 2016 with FD being remunerated on a monthly recurring revenue share basis for additional meters installed. Utilismart selected the Kx-based solution following detailed evaluation of competing solutions and their ability to capture, store and manipulate big fast data sets.

When implemented, the system will provide a significant installed user base for the Group's sensor data platform.