- Infomedia’s multi-year enterprise agreement with Ford Europe is an exciting win in a new era for Next Gen EPC platform.
- The total contract value of the deal is ~A$14 million over 5 years.
Infomedia Ltd (ASX:IFM) has secured a multi-year enterprise agreement with Ford Europe which supported its share to surge on ASX. At AEDT 11:06 AM, Infomedia shares are trading at A$1.660, up 8.852% from its previous close with a market cap of A$572.20 million.
Infomedia Ltd is an Australian technology solution company, headquartered in Sydney. It provides service quoting software systems, develops and supplies electronic parts catalogues, helps in data analytics plus business insights for the aftersales parts & service sector of the global automotive industry.
On 4 November 2020, Infomedia Ltd entered into a strategic pan-European deal with Ford Europe under which the Company would offer next generation (Next Gen) of its Microcat electronic parts catalogue (EPC) in the region. The deal with Ford Europe is an important achievement for the Company as it demonstrates that IFM is delivering on the strategic objectives it set for its business.
The deal with Ford Europe is secured before the completion of IFM’s global next generation integrated parts and service platform which would be rolled out by the completion of 2020.
The contract value of this strategic win is nearly A$14 million over five years. The revenue would start to ramp up from January 2021.
Infomedia’s CEO, Mr Jonathan Rubinsztein, stated that the Company has been investing in the global platform to ensure that the systems, architecture and resources would support global growth. Presently, the delivery of the Next Gen is in the final phase of that strategy. The win of this deal with Ford Europe reflects how IFM would make use of considerable change impacting the global automotive industry with innovative technology solutions.
Automotive Industry Challenges and the Launch of Microcat EPC:
Earlier during July 2020, CEO, Jonathan Rubinsztein highlighted that the automotive industry is at an important crossroad where there has been a decline in the new car sales. The customer expectations are changing, and there is a rapid technology advancement which has a profound and disrupting impact on a global scale.
During these challenging times, the Company was working with its OEM partners & their dealership networks to offer assistance and develop aftersales recovery plans, which is the biggest concern in present times.
To meet these challenges, CEO Jonathan Rubinsztein announced that launch of Microcat EPC that would deal with these sales challenges.
Based on the feedback from its customers, Microcat EPC was built, and it would focus on three main objectives:
- Make parts selling quicker and more precise.
- Increase the size of parts orders and simplify the sales process.
- Help Parts Departments implement self-serve eCommerce solutions.