The Pro Medicus Limited (ASX: PME) share price is having a strong start to the day.
In morning trade, the ASX 200 health imaging technology company's shares are up 10% to a record high of $78.82.
Why is this ASX 200 tech share jumping?
Investors have been buying the company's shares this morning after it announced a massive contract win.
According to the release, the company has signed a $140 million 10-year contract with Baylor Scott & White Health (BSWH).
BSWH is the largest not-for-profit healthcare system in Texas and one of the largest in the United States.
The release notes that the contract is based on a transactional licensing model and will see the company's cloud-engineered Visage 7 Enterprise Imaging platform implemented throughout BSWH, providing a unified diagnostic imaging platform. Also included will be Visage 7 Open Archive and Visage 7 Workflow modules.
Management advised that planning for the rollout is to commence immediately and will be based on Visage's proven cloud-based implementation process, with multi-phased go-lives targeted to begin in the first quarter of the 2024 calendar year.
A 'noteworthy' deal
Pro Medicus CEO, Dr Sam Hupert, commented:
Baylor Scott & White Health joins our impressive list of IDN and Tier 1 academic clients, and represents our first major client in Texas. The scale and scope of our initiative with Baylor Scott & White Health is noteworthy and will include nearly 500 Radiologists who will be exposed to the benefits of Visage 7.
Pleasingly, Dr Hupert highlights that there are still plenty more potential deals in the pipeline. He said:
Our pipeline remains strong and spans all market segments. As has been the case with many of our recent contracts, this deal is for our "full-stack" comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.
This ASX 200 share is now up almost 50% over the last 12 months.