archTIS Ltd (ASX:AR9) is trading higher after securing a landmark $4.2 million contract with the Department of Defence to perform a risk reduction activity for multi-national information sharing and cross-domain services.
The risk reduction activity will be conducted over the next 12 months and will include development, building and accreditation activities to provide Defence with an information sharing architecture pattern for cross and multi-domain services between different warfighter and Allied partners.
This activity is aimed at reducing risk to and informing Defence on future capability decisions and acquisitions.
Shares were more than 40% higher to 59 cents on strong volume of more than 18 million before closing at 48.5 cents.
“Well-positioned to deliver”
archTIS CEO Daniel Lai welcomed the new contact, stating it was the company’s largest contract to date, evidencing both its growing maturity as well as the department’s commitment to invest in premium sovereign information security capabilities.
He said: “I am delighted that archTIS has been selected to lead this risk reduction activity.
“The need to share, control and trust information in the warfighter domain, between forces and with allies remains a critical requirement and archTIS is well-positioned to deliver on this.”
Valued at $4.2 million
The total contract value is $4.2 million which includes three licences of archTIS Kojensi enterprises platform (600 users) for the enterprise to the value of $760,000 with $3,440,000 in associated implementation services.
This contract will commence immediately with an expected duration of around 9-12 months unless extended.