Mach7 Technologies (ASX: $M7T) renewal agreement with Penn State Health

Mach7 Technologies Limited (ASX: $M7T) has announced a 3-year renewal agreement with Penn State Health for its Enterprise Imaging Platform. The agreement, with a Total Contract Value (TCV) of A$3.1M, comprises a Capital Software Licence Fee of A$1.1M and A$2.0M in Maintenance and Support Fees.

Mach7 CEO Mike Lampron on Penn State Health renewal agreement

Penn State Health has been a valued customer since 2015 and our longstanding partnership illustrates the success of our 'land and expand' strategy with the 3-year renewal agreement representing an almost doubling in annual studies since contract inception. The capital licence agreement forms part of a large renewal program in FY24 which has demonstrated our strong customer retention. It also highlights that some customers will continue to choose a capital model despite the broader industry trend towards subscription licences, especially in North America. Mach7's willingness to offer both payment models is a competitive advantage as we continue to expand our footprint across our core markets.

Summary of Mach7 Technologies (ASX: $M7T) announcement

Mach7 Technologies Limited (ASX: $M7T) has secured a 3-year renewal agreement with Penn State Health for its Enterprise Imaging Platform, with a Total Contract Value (TCV) of A$3.1M. The agreement includes a Capital Software Licence Fee of A$1.1M and A$2.0M in Maintenance and Support Fees. CEO Mike Lampron highlighted the success of their 'land and expand' strategy and the company's strong customer retention. The willingness to offer both payment models provides a competitive advantage as Mach7 continues to expand its footprint across core markets.