9Spokes shares spike on the back of five-year distribution partnership with Visa
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Data management company 9Spokes (ASX:9SP) has emerged from a three-week trading hiatus to announce a five-year partnership with payments giant Visa.
Shares in 9Spokes, which have been in a trading halt since June 29, jumped by more than 40 per cent in morning trade.
The deal will see Visa offer 9Spokes’ dashboard management solution to its clients and their customers, leveraging its position as a platform provider to enable a reseller channel for 9Spokes products.
9Spokes said it expected realised revenue from the deal to be “material”, however the total amount received would still be “dependent on a number of factors, such as customer adoption and implementation”.
Distribution through Visa will be on a two-tiered model, with a Gold edition that will operate as a Visa-branded product for banks and a 9Spokes Direct edition — the company’s core platform that will be offered to Visa’s banking clients and their global customer base of small businesses.
The deal will be executed on an exclusive basis, meaning aspects of its product suite offered through Visa can’t be made available to certain service providers.
Visa’s global head of banking solutions Kevin Phalen said the company was on the lookout for solutions to assist its banking clients and their customers, in the wake of the disruption caused by COVID-19.
He said Visa’s partnership with 9Spokes would enable it to “bring a data solution to small business and the banking sectors – a critical need for both”.
9Spokes CEO Adrian Grant said access to Visa’s 15,500-strong customer base would provide the platform the company needed to execute on its vision of a scalable business-to-business (B2B) software platform.
The company’s core product is a dashboard interface that combines data from a company’s various business channels as well as its banking partners to create a data management system for decision making.
Grant said 9Spokes wanted to play a key role in the relationship between financial institutions and clients, which was “evolving rapidly”.
“This joint effort will help us to accelerate growth and bring 9Spokes to businesses through their financial institutions worldwide,” Grant said.
Shares in IT services Cirrus Networks (ASX:CNW) also rose strongly, after the company flagged full-year core earnings of $3.6m, up from $1.9m in the 2019 financial year.
Cirrus said the result was a by-product of its strategic focus on “growth through higher margin services”, with gross margins rising by 10 per cent across the group’s business channel as it generated increased revenues while holding fixed costs steady.
Shares in CNW rose more than 20 per cent to 2.7c, back towards its highest level since mid-February.