MTI Wireless Edge Limited (AIM:MWE) said a division of the company has won a three-year contract with the Israeli Ministry of Defence (MOD), expected to be worth US$1.4mln per year or US$10mln over seven years.
The initial contract, won by PSK Wind Technologies Ltd, has a four-year extension option, the UK-listed Israeli tech company said in a statement.
The company said the Israeli MOD is a returning customer for PSK, a company that MTI acquired 51% of in January 2022.
PSK, which specialises in the development, manufacturing, and integration of communication systems. has provided service and maintenance support to the MOD for over seven years, and is continuing to do so under the same contract.
"This is a significant contract win and on a seven-year basis it is the most valuable contract that the group has ever won. The MOD is a tier one defence customer and we are delighted that they wish to retain PSK's services for at least three years and we would anticipate completing a full seven-year term, given that PSK and the MOD have a history of working closely together in the relevant areas," said MTI's chief executive Moni Borovitz.
"PSK is already proving to be a strong acquisition and this contract win, while anticipated, provides us with excellent visibility and confidence over future revenues."
Shares of the company were trading 7.71% higher at 59.40p in London.