Shares of automotive servicing technology provider, Infomedia Limited (ASX: IFM) have soared today following the announcement of a key deal with Hyundai America.
Infomedia offers easy-to-order electronic parts catalogues (EPC) for car dealerships and the fast-growing Superservice solution suite – which enables a complete servicing experience (including quotation estimates) for auto shop employees and their customers.
Whilst the recent non-renewal of a Superservice Menus contract with Jeep Land Rover dented the company's ability to grow profits as quickly as it'd like, today's announcement of a new deal with Hyundai Motor America could be a significant one for the company.
In an announcement to the ASX this morning, Infomedia said, "Following the successful pilot phase of Superservice at key Hyundai U.S. dealerships during the last 5 months, Infomedia will be the authorized supplier for the Superservice system to Hyundai's dealers in the U.S."
It's a three-year agreement to supply and install components of the Superservice platform for Hyundai dealers throughout the country. Hyundai America has more than 820 dealerships spread across the US.
Is it time to buy Infomedia shares?
Infomedia was recently admitted into the S&P/ASX300 (Index: ^AXKO) (ASX: XKO) following explosive share price growth. However even after today's jump in share price, it's offering long-term appeal for investors seeking both income and capital gains potential.
