The Vection Technologies Ltd (ASX: VR1) share price is up 4.17 at 12.5 cents in early trade today. This comes after the company announced that it will begin collaborating with global information technology company, HP Inc (HP).
The Vection share price closed last Friday at 12 cents in the weak sentiment of the ASX market. Previously, shares in the real-time software company were sitting at a 2-week high of 13.5 cents.
What did Vection announce?
In this morning's release, Vection advised it has started an original equipment manufacturer (OEM) agreement with HP.
Under the deal, both companies will seek to create virtual reality (VR) integrated solutions to be delivered across 170 countries. The service agreement will be executed using Vection's VR software and HP's VR hardware expertise, while tapping into HP's expansive global network.
While Vection did not reveal financial information on the OEM agreement, it expects revenue to be material. It noted that successful marketing and sales initiatives by both companies would lead to "positive revenue generation".
What did management say?
HP's United States business development manager Matt Gaiser welcomed the partnership, saying:
We are glad to welcome Vection Technologies and Mindesk in our OEM Program. Working together will help Vection to provide an integrated hardware and software service to enterprise customers. Vection's products can leverage Z by HP workstations and VR devices to foster professional CAD development and accelerate go-to-market time across many industries.
Vection technologies director Gabriele Sorrento added:
Working with HP is another key step in the commercial network development strategy aimed at supporting Vection's growth. Being HP OEM partners means for us being able to manage and deliver hardware and software bundles globally. This agreement represents a long step forward for our commercial operation structure.
About the Vection share price
The Vection share price has surged higher in the past 12 months, bringing gains of 380% for investors.
The company's shares hit a low of 1.5 cents in last year's March coronavirus meltdown, before gradually moving upwards in the months following. In September, its shares rocketed from 6 cents to reach a 52-week high of 24 cents in October.
The Vection share price has stabilised around the 12 to 13 cent mark. Based on the current share price, Vection has a market capitalisation of around $115 million.
