Australia retail giant Coles Myer announced it has acquired the rights to the source code of the Peapod home shopping software. A letter of intent, signed today, will give Coles Myer the rights in perpetuity to operate the software exclusively in Australia and New Zealand.
Although Coles wouldn't confirm how much the agreement is worth "it's regarded as a good deal from our perspective," Greg Every, General Manager Media Relations, Coles Myer, told ZDNet Australia.
"There are no maintenance fees, no service fees and no further royalties," Every said.
The deal will be a financial boost for struggling online grocer Peapod whose market value has drooped amidst recent market turbulence particularly unkind to the online retail sector.
Peapod had more rotten luck when four firms cancelled a US$120 million investment following the resignation of CEO Bill Malloy.
Slapping a 'For Sale' sticker on itself was looking like the only option before a cash injection from Netherlands retail company Ahold got the withering Peapod back on track this week.
As part of these negotiations, it is believed Peapod obtained a commitment from the party for an immediate bridge loan.
Coles claims that there are a number of benefits that come with owning the software which it uses for its electronic home shopping service Coles Online.
"Having the source code allows us to modify it ourselves," said Jon Wood, Managing Director of the retailer's e-colesmyer division, in a prepared statement. " We can develop the software in line with our changing requirements," he added.
