Cloudbuy lands contract with Australian government

12th Aug 2014 07:57

Cloudbuy has secured a contract with an Australian state government to build an emarketplace which could be worth A$2.2m over time.The first stage of the contract, which is expected to last a minimum period of six months, is to implement an electronic procurement marketplace for the Treasury department and all IT purchasing.A fee for implementation has been agreed and ongoing Cloudbuy revenues will be derived through a transactional charge. Based on current spend, this could be a fee of around A$0.9m a year which could eventually rise to a maximum of A$7.2m per year, the firm said.Chairman Ronald Duncan said: "This is the first Cloudbuy emarketplace to be signed in Australia and follows our earlier contract wins for spend analytics in this market. "It validates our new business model of taking a small percentage of the spend through the system. It is pleasing to report that there are a significant number of other similar potential customers in the pipeline."As of 08:38 the share price had risen 20.63% to 37p.WS