High-tech materials maker Peratech Limited is to spin out its Eleksen consumer wearable electronics business into QIO Systems.

Peratech, which bought the smart fabrics maker as part of its acquisition of Eleksen Group Plc last month, will take an equity shareholding in QIO Systems.

In return, QIO Systems gains a worldwide exclusive license to manufacture, sell and market Eleksen's ElekTex textile touchpads.

The products are used in wearable electronics applications to control mobile phones and MP3 players in apparel, bags and accessories as well as commercial work wear.

QIO Systems will also acquire the rights to Eleksen's eSystem merchandising programs and will be launching eSystem electronics at retail in time for the Back-to-School 08 and autumn/winter 08 fashion seasons.  

"The relationship with QIO is part of Peratech's strategy to move smart textiles from the niche and into the mainstream," explains Chris Lussey, joint CEO of Peratech.

The team at QIO Systems includes former Eleksen managers, led by John Collins, CEO of QIO Systems who is the former VP of marketing and business development at Eleksen.

Eleksen Group Plc went into administration last October after running out of funding. Customers include Marks & Spencer, ZegnaSport, O'Neill and Belkin.