12th Aug 2014 08:03
LONDON (Alliance News) - cloudBuy PLC Tuesday said it has won a contract with an Australian state government to provide an e-procurement marketplace, which it estimates could generate a fee of approximately AUD900,000 on a yearly basis which could in due course rise to a maximum of AUD7.2 million.
cloudBuy shares were Tuesday quoted up 20% at 37.90 pence. It didn't name the Australian state.
"This is the first cloudBuy emarketplace to be signed in Australia and follows our earlier contract wins for spend analytics in this market. It validates our new business model of taking a small percentage of the spend through the system. It is pleasing to report that there are a significant number of other similar potential customers in the pipeline," Chairman Ronald Duncan said in a statement.
Phase 1 will be to implement an end-to-end electronic procurement marketplace for the state government's Treasury department and all IT purchasing.
cloudBuy said its estimates are based on current procurement card spend. It said that an implementation fee has been agreed and ongoing cloudBuy revenues will be derived via a transactional charge, calculated as a percentage of the value of spend.
The initial contract is for a minimum period of six months.
By Samuel Agini; [email protected]; @samuelagini
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