LiveTiles is in a halt after announcing a ‘multimillion dollar’ client – here’s who it might be
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Software play LiveTiles Limited (LVT) has just scored another win, this time clinching a record three-year multimillion deal with a yet-to-be disclosed Top 10 Member of the Fortunes 100 club.
The details surrounding the client are still unclear, but LiveTiles said that it was a US-listed healthcare company that employs over 300,000 employees. Joining the dots would point to three possible companies that fit the bill – CVS Health, United Health Group or McKesson Corporation.
The company’s shares jumped by as much as 20% after the announcement, but at the time of writing, has been put on trading halt at the request of LiveTiles.
The company has decided it will provide “additional information” on the deal and will be trading again Friday at the latest. That second announcement lit a fire under the LVT share price, sending bids up another 33 per cent.
The deal today is the second record-breaking deal for LiveTiles in less than four months. In October 2020, the company inked a “co-sell” deal with Microsoft that allowed the Microsoft US sales teams to sell LivesTile products – targeting clients in the healthcare industry and elsewhere with at least 1,000 employees.
In another deal that month, the company also secured a deal with a US apparel internet retailer – again, without naming who the retailer was.
That deal represented a multi-year, multi-million-dollar win for the company which would help the internet company with its COVID-19 re-opening strategy.
Those recent wins underscored the big boom happening in the Employee Experience Platform category that LiveTiles said it pioneered.
Workplace changes are no doubt happening globally following the impacts of COVID-19, with companies accelerating their investments in digital transformation to implement digital workplace solutions to retain best talents.
Demand is growing for employee wellbeing solutions where LiveTiles’ expertise lies, in a market that analysts are sizing at USD$300 billion in annual global spend.
The competitive healthcare in the industry in the US is also undergoing massive digital transformations, with technology researcher Gartner, who predicted that the global IT spend in the healthcare industry to reach USD$169.5 billion by 2024, up from USD$128.0 billion in 2020.
LiveTiles became positive cashflow for the first time in June 2020, with its share price rising by 20% this year.