- Codan (CDA) subsidiary, DTC Communications, has been awarded multi-year contract with a global technology company
- DTC will supply its software defined mesh radios to an unnamed company which is undertaking a “sensitive military program”
- The initial purchase order is valued at US$28.2 million (A$37.6 million), with 60 per cent of payment expected to be received in FY22
- Despite the contract win, Codan shares tumbled during morning trade, shedding $1.60 in value off its share price
- Shares in Codan were down 14.99 per cent to $11.46 at 2:22 pm AEDT
Codan (CDA) subsidiary, DTC Communications, has been awarded multi-year contract with a global technology company.
Codan first acquired DTC back in May, describing the tech business as an established provider for high bandwidth wireless communications with specialist capabilities.
Under this new contract, DTC will supply its software defined mesh radios to an unnamed, publicly-listed business which is undertaking a “sensitive military program.”
The initial purchase order has a value of US$28.2 million (A$37.6 million), with 60 per cent of payment expected to be received in FY22.
As part of this first order, DTC will deliver its products over a 12-month period before further orders may be placed.
Codan has labelled the contract “strategically important” and said it was consistent with the ASX 200-lister’s growth strategy.
“This contract is consistent with Codan’s strategy to grow our business by successfully delivering communications solutions to the security and military sectors globally,” CDA said.
Despite the contract win, Codan shares tumbled during morning trade on Wednesday, shedding $1.60 in value off its share price.
CDA shares dipped below the $12 mark for the first time in almost a month, trading down over 10 per cent.
Shares in Codan were down 14.99 per cent to $11.46 at 2:22 pm AEDT.