The Eroad Ltd (ASX: ERD) share price is jumping this morning after winning a big new client.
What’s going on?
Transportation technology services company EROAD announced it has signed its largest Australian enterprise customer, Ventia.
If you haven’t heard of Ventia before, it’s one of the largest essential services providers in Australia and New Zealand, specialising in the long term operation, maintenance and management of important public & private assets and infrastructure for corporate and government clients across a broad range of sectors.
It’s a 5-year agreement for a monthly subscription of EROAD’s SaaS products and intends to install approximately 2,500 Ehubo 2 devices in their Australian fleet with a further 1,500 in their New Zealand fleet. It is anticipated that these units will be installed throughout the 2021 calendar year.
As at 31 December 2020, EROAD was providing monthly subscriptions to small and medium customers with 2,625 connected units in Australia. This agreement will almost double EROAD’s presence in the Australian market, with a remaining short to medium term enterprise pipeline of some 15,000 to 20,000 connected vehicles.
Management comments
Ventia CEO Dean Banks said: “Safety and health above all else is our number one priority at Ventia. We are delighted to enter this strategic partnership with EROAD, which will enhance our ability to improve safety for our people, our clients and the communities we operate in.”
Summary thoughts
Obtaining the biggest contract in Australia is clearly a good win for the company. I don’t know enough about the ASX share to judge how much growth potential it has – but more large clients will obviously help growth.
There are plenty of ASX growth shares that I do know are worth a spot on your watchlist.
