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Mach7 Technologies (ASX:M7T) signs multi-year $16.7m contract

ASX News, Health Care
ASX:M7T      MCAP $88.05M
03 January 2023 08:25 (AEDT)

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Mach7 Technologies (M7T) has signed a ten-year deal with outpatient radiology service provider Akumin for $16.7 million.

The new signed sales order involves Mach7’s entire Enterprise Imaging platform, to provide a true cloud-based, enterprise-wide imaging and informatics solution.

The payments will be staged annually across the contract term from the December 30 anniversary date, with a revenue of $7.5 million expected to be recognised in FY23 and annual support fees weighted to the second half of the contract term.

The company said the agreement is a testament to the wide market appeal and application of Mach7’s product suite from smaller, single installation outpatient sites to nationally integrated healthcare organisations.

“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,” Mach7 CEO Mike Lampron said.

“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.”

With annual volume in excess of 1.7 million, Mach7’s solution will help Akumin 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.

Mach7 considers itself to be well progressed in discussions with several large healthcare firms and will update the market where these translate to new contract wins.

Shares in Mach7 climbed 21.1 per cent, trading at 69 cents at 11:45 am AEDT.

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