The Australian Department of Defence has signed a deal with global provider of data-centric security solutions archTIS Ltd (ASX:AR9, OTCQB:ARHLF) to the tune of A$2.3 million to expand NC Protect licences with the department.
Shares up on contract news
The news sent AR9’s shares as much as 40.6% higher in morning ASX trade to A$0.097.
NC Protect enables Australian Defence information to be shared with other allied partners while enforcing need-to-know principles and compliance requirements.
The total contract licensing value of A$2.3 million is poised for an initial annual recurring revenue (ARR) of A$276,000 in year one, which will increase to A$463,000 from year two onwards.
This licence contract follows on from the A$700,000 services contract the department awarded archTIS in June 2024 and establishes NC Protect as the data-centric security product of choice for Defence SharePoint on-premises deployments.
Sensitive information safe
archTIS says its NC Protect product dynamically secures sensitive information by applying zero trust enforcement policies to data-centric access controls across Microsoft 365, SharePoint on-premises and file share environments.
The company regards the contract as validation of the trust Defence places in the NC Protect product to safeguard its most trusted information, and says it will open the market for NC Protect to other defence and government clients globally.
archTIS managing director Daniel Lai said: “This contract is an important step to open new market opportunities for NC Protect.
“It demonstrates strong growth for NC Protect with a referenceable target market client.
Strong position for future growth
“It also validates NC Protect’s unique value proposition as the premier data-centric security solution for Microsoft products within the Australian Department of Defence.
“This contract places archTIS in a strong position for future growth as global Defence organisations struggle with the challenge to securely share and collaborate on the sensitive and classified information.”
The contract term expires in May 2028 and includes standard government termination clauses based on 30 days written notice of a material breach of contract.