The Tern PLC (LON: TERN) share price surged by 9.81% after revealing that its portfolio company, Device Authority Limited, had won a contract worth $1.2 million over five years from an existing client.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The contract is with an existing automobile company and involves the expanded deployment of Device Authority's KeyScaler® technology. Tern holds a 53.8% stake in Device Authority and is set to benefit significantly from any profits generated by the company.
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Investors cheered the announcement, given the majority stake Tern owns in Device Authority. On its part, Tern said that 2022 was a pivotal year for Device authority after the firm secured a strategic investment from Venafi in December 2021.
The Device Authority contract will enable the automotive supplier to transform its long-term use of the KeyScaler® platform to develop a ‘secure identities’ production model for use across its global manufacturing facilities. ‘
The deal positions Device Authority as a critical partner for the automotive supplier over the next five years, as the two firms intend to continue working together over the long term. This is the second significant contract signed by Device Authority recently.
The company entered a strategic partnership with key channel partners serving the lending European energy providers in November 2022. The deal will see the firm’s KeyScaler® platform integrated into existing and new services to provide identity management services for next-generation and existing connected infrastructure.
Device authority expects the above contract to generate revenues worth $500,000 over the next three years.
Al Sisto, Tern Plc’s CEO, said: “We are delighted with the rapid progress that Device Authority is making in growing its revenue base, particularly via long-term contracts with industry leaders. The previous hard-fought wins with these leading companies are now being transformed into multi-year agreements. Device Authority is validating the industry recognition it has already received from groups such as ABI Research* with these significant new contract wins, which will help them remain an industry leader in IoT device identity lifecycle management.”
Tern shares are down 13.51% for the year after rallying 58.06% over the past month. The shares are currently trading near a resistance zone and could pull back.
*This is not investment advice.
Tern share price.
The Tern share price surged 9.81% to trade at 11.53p, rising from Thursday’s closing price of 10.5p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.