Why the Mach7 Technologies share price is printing 52-week highs

A contract win sees the Mach7 Technologies Ltd (ASX:M7T) share price surge higher in Tuesday trade.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mach7 Technologies Ltd (ASX: M7T) share price is up 7% to $0.69 in Tuesday trade following this morning's announcement that the company has signed a software and services agreement with Advocate Aurora Health, an integrated healthcare network headquartered in Milwaukee, Wisconsin. The share price hit a 52-week high of $0.74 in early morning trade before retreating. 

The terms of the agreement

The agreement between the 2 parties has a minimum total contract value of $5.7 million over a 5-year term. Mach7 will also add $550,000 per annum to its annual recurring revenue, bringing the total annual recurring revenue under contract to $8.4 million per annum. 

The terms of the agreement stipulate that Advocate Aurora Health will use Mach7's Enterprise Imaging Platform to store and manage images across its network of healthcare locations. Moreover, the company has also purchased the migration engine to migrate around 3.5 petabytes of data. 

Advocate Aurora Health is one of the 10 largest not-for-profit integrated health systems in the United States (US). The organisation encompasses 28 hospitals, 500 outpatient locations and 68 Walgreen's clinics across the Midwest states of Wisconsin and Illinois. 

Foolish takeaway

The agreement announced this morning is one of Mach7's largest to date in the lucrative US market. Furthermore, Advocate Aurora Health is now one of the company's largest customers in the US. 

Mach7 has been one of the best performing small-cap technology companies on the ASX in 2019, with its share price rising 229%. Other small-cap technology companies that have rewarded shareholders in 2019 include Audinate Group Ltd (ASX: AD8), Bigtincan Holdings Ltd (ASX: BTH) and Megaport Ltd (ASX: MP1).

As Mach7 continues to win new business, it remains a stock small-cap investors should at the very least be monitoring on their watch lists. Focus will now turn towards its quarterly business update, which is expected to be released before the end of July. 

Tim Katavic has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool Australia has recommended MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Highs

Arrows pointing upwards with a man pointing his finger at one.
52-Week Highs

7 ASX All Ords shares smashing new 52-week highs on Tuesday

Do you own any of these stocks at new highs today?

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
Share Market News

Here's when ANZ says the first interest rate cut will be

There's been speculation that Australia's first rate cut may be delayed if the United States delays its own.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

Would I be crazy to buy Northern Star shares at almost $15?

Is it too late to generate golden returns from this high-flying stock?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
52-Week Highs

13 ASX 200 shares at 52-week highs

These shares are making their shareholders smile on Thursday.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
52-Week Highs

These 5 ASX 200 shares just hit new 52-week highs

Do you own any of these five lucky stocks?

Read more »

ETF on white blocks with a rising arrow on top of coin piles.
52-Week Highs

12 ASX ETFs breaking the mould to hit 52-week highs today

What a day for ASX ETF investors!

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »