The extension gives EVS the opportunity to continue its independent and commercial partnership with one of its largest customers.
Environmental technology company Envirosuite (ASX:EVS) flagged a major contract update this morning with Airservices Australia – its largest customer by revenue.
The company said its existing contract has been extended by another five years – a testament to the strength of its commercial partnership with Airservices which dates back to 2008.
Commenting on the deal, EVS CEO Jason Cooper highlighted that along with the potential for expanded commercial arrangements, the contract extension also comes amid a brighter outlook for the airline sector.
“We are encouraged by this renewal as well as the resurgence that we are seeing globally in the aviation industry which bodes well for this part of our business,” Cooper said.
“Airservices is one of our most significant clients and we are pleased to be continuing our multi-decade relationship with them. We look forward to continuing to work with and support Airservices into the future.”
Next steps
Under the terms of the deal, Envirosuite’s Aviation division will continue to provide noise monitoring services as part of Airservices’ ongoing airport environmental management solutions.
Airservices is a government-owned organisation that’s responsible for safety across 11% of the world’s total airspace.
Along with safety services in regional airspace across Australia, Airservices also manages the provision of aviation rescue fire-fighting services across Australia’s busiest airports.
The company deploys its advanced software platform to capture independent data on aircraft noise – critical information for Airservices to use as part of its safety monitoring and compliance operations.
EVS also captures data on background and community noise through its network of sensors established at major airports.
Importantly as part of the deal, both parties “have also agreed to work together in good faith to develop and agree the terms of a new agreement to apply for the extended term, to better reflect the current commercial services being provided by Envirosuite”, the company said.
EVS will continue to provide its existing services through to August 2026.
This agreement is also a positive signal from the Australian government continuing to invest in sovereign technology.
In recent times, the Australian government has been emphatic about its investment into the technology sector, particularly in climate change technologies, helping industries to adopt and build capability in areas such as artificial intelligence and driving Industry 4.0.
Today’s operational update follows a key executive hire in Envirosuite’s global operations, with US-based consultant Aaron Lapsley joining the company as chief operating officer (COO) to drive the company’s major growth opportunities across the North American market.
This article was developed in collaboration with Envirosuite, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.