The Mach7 Technologies Ltd (ASX: M7T) share price has jumped after the company announced a multi-year contract worth $16.7 million.
This business is a medical imaging systems provider that develops image management and viewing solutions for healthcare organisations.
Large new contract
Mach7 said that it has agreed a capital licence with Akumin Inc, with a total contract value of $16.7 million. Payments will be staged annually across the life of the contract, with revenue of $7.5 million expected to be recognised in FY23 and annual support fees weighted to the second half of the contract term.
This is the largest customer contract in Mach7’s history.
Akumin is going to consolidate multiple PACS (picture archiving and communication system) into a common enterprise solution by using Mach7’s entire cloud-based, enterprise imaging platform.
The ASX healthcare share said that the deal provides Mach7 with increased exposure to the high growth outpatient market.
With annual volume in excess of 1.7 million, Mach7’s solution will help Akumin to provide its customers with real-time, high-quality results, and develop a range of “superior services that provide insightful and useful clinical information to their referring physicians”.
Management comments
Mach7’s Chief Executive Officer, Mike Lampron, said:
We are delighted that Akumin has chosen Mach7 as its PACS solution partner, replacing numerous disparate alternatives across its network.
Our vendor agnostic easily integrated product suite and migration services were key requirements for the massive data ingestion and consolidation associated with Akumin’s cloud-focused radiology ecosystem.
This deal together with the recent sales order received from our new partner, Nuvodia increases our exposure to the fast-growing outpatient radiology market and demonstrates that our technology appeals to customers across the size spectrum.
Final thoughts on the Mach7 share price
I don’t know much about the business, but the healthcare IT sector is a growth area, and winning their biggest customer seems like a really big positive. I’m not sure if it’s a buy now, but it does seem to be doing well.
