Divio signs a 3-year contract worth MSEK 44 of revenue
Leading Healthcare Company signs a prestigious 3-year contract worth approximately MSEK 44 with Divio Technologies AB (publ). The contract will generate USD 56,000 in monthly recurring subscription revenues (MRR) and USD 59,000 in monthly recurring consultancy services.
Divio Technologies (publ) is pleased to announce the win of a tender with a major Swiss Healthcare Company, resulting in an approximately 36% increase in Monthly Recurring Revenue (MRR). The contract involves managing, optimizing, and maintaining the company's AWS cloud environment. Additionally, the project includes a three-year consultancy engagement where Divio will oversee trusted subcontractors in the development of new web applications and the enhancement of existing ones. The total contract value is estimated to be about MSEK 44 over three years. USD 56,000 represents monthly recurring SaaS revenue to Divio, while the consultancy portion, generating USD 59,000 per month, operates at a low margin. Both parts of the contracts will have an initial term of three years and will be invoiced 3 months in advance. This partnership between Divio and the Healthcare Company will leverage the strengths and expertise of both parties, providing a robust and scalable solution tailored to the needs of the Swiss healthcare sector. The contract was signed today and the project is expected to start in September 2024.
"This contract is a significant milestone for Divio where we, against well-known competitors, have secured another leading project which underscores the value and quality of our services. It demonstrates our capabilities to meet the highest standards required by large enterprise customers who operate in highly regulated environments," says Jon Levin, CEO Divio Technologies. “It is a result of our long and continued efforts to improve our sales and delivery capabilities and focus on highly demanding clients. In addition, it will give us another great business case when attracting new clients to Divio and, as always, the chance to increase the service offering to an existing client so the indirect effects of this contract should not be underestimated”, continues Jon.