Arcontech (ARC) , a provider of products and services for financial market data processing and trading, announced a new multi-year contract for its CityVision platform with a new Tier 1 global bank client.
Arcontech products being deployed include MVCS (Multi-Vendor Contribution System) which enables market data content creators to contribute to multiple vendors simultaneously; Archontech Cache, a calculations engine that allows distribution of vendor feeds to end users; and Excelerator, a real-time Excel add-in for financial instrument pricing and publication.
The multi-year agreement will initially deploy in New York and should later expand to Europe and Asia.
"Discussions commenced as the bank wished to both access and contribute real-time prices to a global market-data vendor, their risk-management platform and other internal systems for which the existing market-data infrastructure was unable to cope with the frequency and volume of updates. Arcontech was selected as we have tried and tested solutions for both large and small deployments as well as the ability to customise quickly to meet specific client requirements." commented Matthew Jeffs, CEO.
View from Vox
A major contract win for Arcontech, underpinning management expectations for the full year and bolstering the company's ability to engage more prospects and grow its orderbook. The multi-year contract of undisclosed value for Arcontech's MVCS, Arcontech Cache, and Excelerator products puts Arcontech on the map as a provider of real-time market data services to a Tier 1 bank. The contract should yield global upselling opportunities from an initial deployment in New York and later Europe and Asia. Investors welcomed the news, driving ARC shares 10% higher on Friday.
The contract win speaks to the flexibility of Arcontech's offerings, where the client's existing market data infrastructure was unable to cope with the frequency and volume of updates, including real time prices to a global market data vendor, and Arcontech's solution could be customised to meet the customer's growing needs. The contract win is already factored into existing forecasts, with further pipeline contracts having the potential to lift FY24 and FY25 expectations.
Broker Cavendish maintained its 180p target price based on 34x conservative FY25E EPS forecasts. Looking ahead, investors can expect further contract wins, H1 results, and potential M&A opportunities.
Follow News & Updates from Arcontech: