The Mach7 Technologies Ltd (ASX: M7T) share price reached a multi-year high today. This comes after the company announced it has altered an existing contract with Adventist Health System.
During morning trade, the Mach7 share price stormed higher to $1.47, representing a new, multi-year high. At the time of writing, Mach7 shares have slightly pulled back to $1.45, up 9.85%. In comparison, the All Ordinaries Index (ASX: XAO) is marginally higher to 7,097 points, up 0.3%.
What's driving the Mach7 share price?
The Mach7 share price is on the move after the company reported it has expanded its relationship with Adventist Health.
According to the release, Mach7 will provide Adventist Health the licence for its Mach7 Picture Archive Communication System (PACS) solution. This includes the Mach7 Enterprise Imaging Platform, eUnity Diagnostic Viewer, Mach7 Universal Worklist, Mach7 QC Module, and Mach7 Clinical Portal.
Terms of the deal
Under the agreement, the software licence will be rolled out in stages as per Adventist Health's individual hospital directions. Mach7 is anticipating that 3 of the 22 hospitals will place an order within the current quarter, reflecting immediate short-term revenue generation.
The remaining orders are mostly expected to be completed by the end of the 2021 calendar year.
The contract is worth $7.9 million, and includes migration services as well as support and maintenance for 5 years.
Quick take on Adventist Health
Adventist Health is a multinational, non-profit corporation that services over 80 communities across the West Coast of the United States, and in Hawaii. The organisation provides care in hospitals, clinics, home care agencies, hospice agencies and joint-venture retirement centres.
Management commentary
Mach7 CEO Mr Mike Lampron welcomed the extended partnership, saying:
I am delighted to partner with Adventist for their PACS replacement project. The collaborative partnership we have established with Adventist Health has allowed us to help them expand their enterprise imaging growth strategy. I am confident Mach7's full Enterprise PACS solution will provide a flexible and scalable foundation that meets the needs of radiologists across their health network.
Mach7 share price snapshot
The Mach7 share price has travelled higher over the last 12 months, gaining almost 90%.
Its shares reached a 52-week low of 37 cents in March, before rising to a multi-year high of $1.47 today.
Based on the current Mach7 share price, the company commands a market capitalisation of roughly $340 million.
