One of BATM Advanced Communications Ltd's (LON:BVC) subsidiaries has inked a five-year framework agreement with a national defence agency worth up to US$35.8mln.
High-end software developer NGSoft – which is wholly-owned by BATM – will provide various ICT services and solutions to the unnamed agency over the course of the next five years.
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In fact, BATM said its subsidiary has already received the first order under the deal which is worth US$2.2mln and is expected to complete early next year.
The potential US$35.8mln awarded to NGSoft represents 50% of the defence agency’s total ICT budget for the next five years.
“We are delighted to have been awarded this agreement following a competitive tender process and to have received the first order so quickly thereafter demonstrates the intent of the defence agency to move forward with this project without delay,” said chief executive Zvi Marom said in a statement.
“This significant government contract provides further validation of the strength of our offering."
He added: “We look forward to delivering this initial project and to expanding on it as well as receiving contracts from new customers following the successful completion of proof-of-concept trials in multiple countries.”
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Shares added 1.1% to 17.95p.
--Adds share price and corrects to remove implication that deal is with a specific government--