Jiangsu Lettall Electronic's (SHA:603629) subsidiary, Haina Lettall Data Services plans to sign a software license agreement with Rafay Systems, according to a Shanghai bourse filing on Thursday.
The deal will allow Lettall Data Services to market and distribute the U.S. firm's software products, including all bug fixes and updates.
The software may not be sold separately or provided independently to end customers and Rafay may directly provide Level 1 technical support to end customers.
The license has a one-year term, but it can be extended for another year if annual revenue of at least $6 million is reached.
The Chinese precision metal stamping components manufacturer's shares slumped 10% during the afternoon trade.