13th Dec 2022 11:26
(Alliance News) - WANdisco PLC on Tuesday said it has signed its second follow-on agreement worth a further USD13.2 million with an unnamed European automotive components supplier.
Shares in the Sheffield-based data-management software company were up 8.3% to 690.00 pence each in London on Tuesday morning.
WANdisco initially entered a 'Commit-to-Consume' contract with the client in July worth USD5 million over five years. Terms were signed to replicate sensor data from automobiles to the Amazon Web Services cloud.
However, in October, WANdisco said the initial data exceeded the volume of data agreed in the original contract. As a result, the company signed a USD7.1 million follow-on contract.
On Tuesday, the company announced a second follow-on agreement worth a further USD13.2 million. It noted that 50% of the now USD25.3 million will be paid in advance.
WANdisco said the client expects to see its data needs grow further over the contract, as an increasing number of vehicles incorporate their sensors from which data is collected. This represents a "potentially significant expansion opportunity", it noted.
As it is a 'Commit-to-Consume' contract, revenue will be recognised as the client moves its data.
Chief Executive & Chair David Richards said: "We are pleased to have signed yet another significant follow-on deal with a large customer in the key automotive sector in IoT. Our unique technology means that we remain the only platform capable of effectively moving sensor data to the cloud at scale, within the Client's chosen ecosystem."
By Sophie Rose, Alliance News reporter
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