The Identitii Ltd (ASX: ID8) share price is surging in early-afternoon trade following a contract renewal. At the time of writing, the financial technology company's shares are swapping hands for 14 cents, up 8%.
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What's moving the Identitii share price higher?
Investors are buying Identitii's shares after the company released a positive update to the market this morning.
In its announcement, Identitii advised it has renewed its original contract with global banking giant, HSBC.
Under the renewed contract, Identitii will continue to provide services to support HSBC's Digital Account Receivables Tool (DART). This will see Identitii offer new features, training and maintenance, as well as support for DART's expansion into new markets.
DART, centred around Identitii technology, is built specifically for HSBC's Global Liquidity and Cash Management business. The platform also enables users to track invoices and receive payment information, resulting in faster business payments.
Furthermore, DART streamlines the customer experience and automates the accounts receivables process for HSBC's corporate clients, leading to working capital efficiency.
DART first went live in India in 2018 and is now available in Indonesia. It is being slowly rolled out across Asia.
The 3-year deal is worth up to a total of $2 million in revenue for Identitii. This consists of $0.6 million in annually recurring revenue, along with up to $1.4 million in professional services and other fees.
In addition, both parties have also renewed their global Master Framework Agreement (MFA). This gives Identitii to right to licence its technology to any other business arms of HSBC globally.
Words from the CEO
Identitii CEO John Rayment welcomed the extended partnership, saying:
Renewing a contract with an existing customer is an exciting time for any business as it points to the success of the initial project and continuation of the relationship.
This announcement is particularly exciting for Identitii as HSBC was our first production customer in 2017 and since then we have delivered HSBC DART and provided ongoing development and support that has enabled them to expand the platform into new geographic markets.
The Identitii share price has fallen heavily over the past 12 months, down 55%. Year-to-date, the company's shares are around 15% lower.
