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NETSOL Signs $30-million Contract with Chinese Company
Aug. 09, 2018 03:55PM PST
Fintech Investing
NETSOL Technologies has signed a five-year contract with a company that has a strong presence in China as well the Asia-Pacific region as a whole.
NETSOL Technologies (NASDAQ:NTWK) announced on Thursday (August 9) that it has signed a five-year contract to implement its NFS Ascent platform with a new customer in China.
The contract is valued at US$30 million. NETSOL, which is engaged in the global leasing and financing industry, says its new client is an auto captive finance company with a strong presence in China as well as rest of Asia-Pacific region.
The Ascent platform helps companies in leasing/financing cycles to contract management. NETSOL stresses in a press release that it was chosen over three other potential vendors.
“After a rigorous, two-year evaluation process, which included a comprehensive review of numerous key performance indicators, Ascent was deemed the best solution,” said President Naeem Ghauri.
Further, the company says its new customer determined that the Ascent platform is the best-suited solution for addressing complex regulatory and business processes in China.
“This contract gives us even more optimism for fiscal 2019, as it solidifies our position as a leader in the space and will propel us to an even stronger position as we continue to execute on our strategy to drive long-term shareholder value,” said NETSOL CEO Najeeb Ghauri.
In addition to the current signing, the company has 23 existing customers in China. Both Naeem and Najeeb Ghauri believe the new deal will increase opportunities for business in China.
“Additionally, this agreement is consistent in size and value with the major Ascent implementation we previously announced in China, further proving that these extended sales cycles, which require more complexity as well as functionality, will ultimately lead to greater contract sizes over longer periods of time, ” Najeeb Ghauri said.
Following the announcement, shares of NETSOL remain unchanged from the previous day, closing the trading session on Thursday at US$6.
The stock had a day high of US$6.20 and a low of US$5.80, with over 200,000 shares traded on Thursday. NETSOL has a “buy” ranking on TradingView with 15 verticals in favor, eight neutral and three against.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.