This tiny ASX tech share is leaping 25% after striking a deal with Telstra

This tech stock is catching the eye on Friday. Here's why.

| More on:
a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ava Risk Group Ltd (ASX: AVA) shares are on course to end the week on a high.

In morning trade, the ASX tech share was up 25% to 20 cents before being paused from trade.

Why is this ASX tech share rocketing?

The catalyst for this strong gain was news that the risk management technologies company has signed a major agreement with Telstra Group Ltd (ASX: TLS).

According to the release, AVA Risk has signed a Telstra Supply Agreement (TSA) that it believes establishes a substantial opportunity within the large and globally addressable telecommunications vertical.

Management notes that TSA is the culmination of 10 months of collaboration, including product trials with Telstra and its customers.

Those trials demonstrated the superior ability of its sensing technology to be deployed to Telstra's existing fibre network to detect events and provide appropriate classification and reporting. It notes that this provides a rich source of data to Telstra, and effectively turns the existing fibre network into sensors.

The ASX tech share believes it is a clear demonstration of the adaptability of the company's technology to adjacent applications, such as telecommunications, which opens significant new markets to the company.

Management has described it as a "significant milestone" for the company. Ava Risk CEO, Mal Maginnis, commented:

Signing a preferred supplier agreement with Telstra is a very significant milestone for Ava Risk Group. It underscores the strength of our market-leading solutions and is testament to our commitment to innovation to meet the evolving needs of our global client base. It clearly demonstrates that our sensing technology, which has evolved from security solutions, can be deployed to multiple applications. This collaboration cements our position as a trusted supplier, and we look forward to working extensively with Telstra.

With more than 5 billion kilometres of fibre optic cable deployed globally (as at 2022), the agreement with Telstra Group represents the entry into a large and attractive market vertical for Ava Risk Group's technology.

Earlier this week, Maginnis vested 333,333 AVA Risk shares.

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A woman is excited as she reads the latest rumour on her phone.
Earnings Results

Why this ASX All Ords share leaping 20% despite a big dent in profits

Falling reported profits aren't putting investors off this stock.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

This ASX 200 share is predicted to benefit from AI demand for years

A fund manager has picked out a stock that looks set to be a significant AI winner.

Read more »

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up this week

What a week for the leading market sector with an impressive 6.2% gain.

Read more »

a couple clink champagne glasses on board a private aircraft with gourmet food plates set in front of them. They are wearing designer clothes and looking wealthy.
ETFs

How this rocketing ASX ETF is tapping into the billionaire-making AI revolution

The AI revolution has added billions more dollars to the fortunes of dozens of billionaires in 2024.

Read more »

Smiling man working on his laptop.
Technology Shares

Buying Altium shares amid blockbuster takeover deal? What you need to know

It’s an exciting time to own Altium shares.

Read more »

A man looking at his laptop and thinking.
Technology Shares

ASX 200 tech stock down 11% despite record half-year profit

This technology business is the biggest faller on the ASX 200 today.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Technology Shares

Altium shares rocket on $9.1b takeover deal

This tech stock looks set to leave the ASX boards after accepting a takeover offer.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Technology Shares

Will the Life360 share price rise another 55% in 2024?

Is this tech stock destined to smash the market again this year?

Read more »