Mach7 Technologies (ASX:M7T) has extended a service and support agreement with the Hospital Authority of Hong Kong (HAHK) for 5 years to the value of $15.26 million. 

The $170.85 million market capitalisation company says the agreement is for an extension of HAHK vendor neutral archive (VNA) and eUnity Support and Maintenance, along with professional services that will be delivered and recognised on an as-needed basis through the contract extension.

Subsequent to today’s announcement, Mach7’s share price increased by 8.45% to $0.77 as of 12:50pm on Thursday afternoon (28 September). 

Commenting on the agreement, Mach7 Technologies Chief Executive Officer (CEO) Mike Lampron says: “We are pleased to see continued support from this very important and longstanding client. 

“This long-term commitment shows the value that Mach7 brings to our clients and the deep-rooted partnerships that develop over time”

This long-term commitment shows the value that Mach7 brings to our clients and the deep-rooted partnerships that develop over time. 

The inclusion of professional services in this extension further illustrates how our product can continue to add value through increased use cases beyond what was imaginable at contract inception.”

The total contract value includes a recurring revenue value of $12.36 million — $2.47 million annually — that will be recognised over the course of the extension. 

The professional services component amounts to $2.9 million, which will be delivered and recognised over the course of the extension on an as-needed basis. 

Mach7 Technologies is a medical imaging systems provider that develops innovative image management and viewing solutions for healthcare organisations. 

As of 30 June 2023, the company had $23.395 million cash and cash equivalents at hand, according to its latest quarterly report. 

Write to Aaliyah Rogan at Mining.com.au

Images: Mach7 Technologies