Why the Family Zone (ASX:FZO) share price is leaping 15%

A new contract win is giving this tech company's shares a boost…

The Family Zone Cyber Safety Ltd (ASX: FZO) share price has been on fire on Thursday.

In afternoon trade, the cyber safety company's shares are up 15% to a 52-week high of 77.5 cents.

This latest gain means the Family Zone share price is now up 68% in 2021.

Happy child jumping for joy.

Image source: Getty Images

Why is the Family Zone share price rocketing higher?

The Family Zone share price has taken off today after the release of a positive announcement this morning.

According to the release, the company's recently acquired subsidiary, Smoothwall, has been awarded a substantial contract with Public Sector Broadband Aggregation (PSBA). This is the public sector provider of broadband services to Wales in the UK.

The contract will see Smoothwall Cloud Reporting services provided to all state schools in Wales. This is on top of the Smoothwall Filter, which is used across all Wales public schools already.

What is the deal worth?

The release explains that the three-year deal has a total contract value of ~ A$1.4 million or A$475,000 per annum.

Management believes it reinforces Smoothwall's position as the leading safeguarding provider in the UK. It also notes that it offers future opportunities to broaden the scope of services provided.

Family Zone's Managing Director, Tim Levy, commented: "Securing the Cloud Reporting contract with PSBA enhances Smoothwall's reputation as a leading provider of safeguarding solutions in the UK. This important contract deepens our relationships with Wales education and creates opportunities to broaden the scope of services we can provide in the future."

Family Zone is quickly becoming a leader in the fast growing global cyber safety industry. It has a service footprint in excess of 18,000 schools and 9 million students across the United States, United Kingdom, and the Australia and New Zealand markets.

The Family Zone share price is now up 31% since announcing the acquisition of Smoothwall for $142 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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