Mach7 (ASX:M7T) signs largest-ever customer contract, shares soar 20%

2 min read | January 03, 2023 03:58 PM AEDT | By Tamnna

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Mach7 (ASX:M7T) signs largest-ever customer contract, shares soar 20% — Image source: © Rawf88 | Megapixl.com

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Highlights

Mach7 entered a customer contract with Akumin Inc.

The company expects to recognise revenue of AU$7.5 million in FY23 through this largest-ever customer contract.

The contract has been signed under a 10-year term with a total value of approximately AU$16.7 million.

ASX-listed healthcare software solutions company Mach7 Technologies Limited (ASX:M7T) has entered a new customer contract with Akumin Inc., an outpatient radiology service provider listed on NASDAQ.

Through this contract, which the company highlights as its largest customer contract to date, the business anticipates more visibility and increased exposure in the high-growth outpatient market.

This announcement triggered a strong performance of Mach7’s share price. Around 2:02 PM AEDT on 3 January 2023, one share of Mach7 was valued at AU$0.685 with a gain of 20.175%.

Meanwhile, the shares of Mach7 have also increased in value by 20.18% over the last five trading days, 16.10% in a month, and 31.73% over the previous six months. On the contrary, the share price of Mach7 has dropped by 17.47% in a year.

Inside Mach7’s multi-year, largest-ever customer contract

According to the capital licence agreement between Mach7 and Akumin, Mach7 will give Akumin access to its entire imaging platform, including its Vendor Neutral Archive (VNA), eUnity Diagnostic Viewer, and workflow apps.

While Mach7 anticipates recognising AU$7.5 million in revenue in FY23 through this agreement, Akumin hopes to establish a real cloud-based, enterprise-wide imaging and informatics solution.

Moreover, with this agreement, Mach7 wants to demonstrate the broad market appeal and use of its product suite. A product suite that can be used by small outpatient clinics with a single installation all the way up to healthcare systems that are nationally integrated.

This customer contract comes under a ten-year term and a total contract value (TCV) of roughly AU$16.7 million. Both parties have decided to process payments annually on the anniversary date (30 December), and the annual support payments will be distributed during the second half of the contract period.

Commenting on the Akumin agreement, Mike Lampron, CEO of Mach7, said:

Data Source: ASX, dated 3 January 2023

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