Software firm secures £8m supply agreement
Back office software supplier eg solutions has concluded a new supply agreement worth more than £8m to the Staffordshire firm.
The five-year agreement is with an unnamed provider of business process management services in the UK and is an existing customer of the Dunston-based company.
“This new five-year fixed term contract provides significantly greater visibility of future revenue for all of the company’s stakeholders,” said the firm in a statement.
The software firm said the new deal superseded all of the pre-existing annual and three-year term contracts already in existence. New licence subscription sales made in the last month will continue through the five-year term.
The total contract value over the five-year term will be a minimum of £8.12m, including £1.4m incremental revenue.
Eg said the net impact on licence revenues in the current year would not be significant. However, the extended term of the agreement mean that the company’s order book of recurring revenues to be recognised beyond the end of the current financial year will rise to £22.93m, an overall increase of 24% on the year ended January 31, 2017.
Commenting on the deal, Elizabeth Gooch, CEO of eg solutions, said: “We are pleased to announce another significant long-term contract win which not only underpins our future revenue streams but also creates an exciting partnership with a major customer in the UK.”
