The Vection Technologies Ltd (ASX: VR1) share price has been on the rise today after the company announced a distribution partnership with Nuovamacut Automazione Spa from Italy. Vection Technologies develops Mindesk, the first native virtual reality interface for Solidworks. Nuovamacut is a global company and one of the top 10 largest CAD/PLM partners of Solidworks, a product built by Dassault Systèmes.
At the time of writing, the Vection share price is up by 3.03% to 17 cents. The Vection share price has risen by more than 110% over the past month.
What moved the Vection share price?
Investors have today driven the Vection share price higher following the company’s partnership announcement with Nuovamacut, which has over $68 million in annual revenue and 160 employees across nine offices. In addition, it distributes Solidworks software to 8,600 company clients and 26,000 users. This makes it the biggest designer community in the Italian territory. Its diverse client portfolio includes sectors ranging from industrial machinery, engineering and construction to aerospace and education.
The Solidworks product is one of the most widely used mechanical CAD software packages in the world. It is used by more than 6 million users worldwide, primarily for industrial design. The software allows designers to quickly sketch out ideas, experiment with features and dimensions, and produce models and detailed drawings.
This agreement represents an opportunity for Vection to accelerate market share growth for its virtual reality software, Mindesk. It aligns with the company’s goal to achieve strong annual recurring revenue growth. Although Vection Technologies advised that the financial impact of the agreement is not determinable, the company did say it anticipated the partnership to be “material for the company”.
Gianmarco Biagi, Managing Director of Vection Technologies, commented on the partnership, stating:
We are very pleased to have partnered with one of the largest Dassault Systèmes Solidworks partners globally. This relationship is a key step forward in our global distribution strategy, aligned with the June 2022 50% ARR goal. Vection Technologies’ management is confidently delivering on its long-term strategy, with a clear roadmap to strong revenue generation during the second half of the current financial year.
The Vection share price has grown quickly over the past two months following a range of positive ASX announcements. These have included the product’s first medical trial, integration with Dell Technologies Inc (NYSE: DELL) products, and the lodgement of patents in the healthcare sector.