MTI Wireless Edge Ltd (LON:MWE) announced that its wireless irrigation control solutions subsidiary, Mottech Water Solutions Ltd has signed a renewal service agreement valued at approximately US$0.9mln.
The AIM-listed technology group, which is focused on comprehensive communication and radio frequency solutions across multiple sectors, said the renewal service agreement is with one of the five largest municipalities in Israel and one of Mottech's largest service customers.
It added that the services will be provided over the next two years, with options to increase the term of the services for up to a further three years.
Mottech's general manager, Dudi Shani, commented: "We are delighted with this renewal agreement, which demonstrates the satisfaction of the customer who has been a client for over two decades now. The initial term of this agreement is for two years, but the municipality has the option to extend it three times, in each case for an additional year, and our experience shows that this is normally the case.
“As such, we consider it likely that this will be a five year renewal agreement with a total value of US$2.3 million, with the potential for increases as the agreement includes price adjustments in relation to the number of units to be serviced, which have tended to increase over time."
The vice president of Operations at the municipality said: "We have been a user of Mottech's wireless water management solutions for over 20 years now, as they have consistently delivered an efficient and effective service.”