Why the Mach7 Technologies share price is printing 52-week highs

A contract win sees the Mach7 Technologies Ltd (ASX:M7T) share price surge higher in Tuesday trade.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mach7 Technologies Ltd (ASX: M7T) share price is up 7% to $0.69 in Tuesday trade following this morning's announcement that the company has signed a software and services agreement with Advocate Aurora Health, an integrated healthcare network headquartered in Milwaukee, Wisconsin. The share price hit a 52-week high of $0.74 in early morning trade before retreating. 

The terms of the agreement

The agreement between the 2 parties has a minimum total contract value of $5.7 million over a 5-year term. Mach7 will also add $550,000 per annum to its annual recurring revenue, bringing the total annual recurring revenue under contract to $8.4 million per annum. 

The terms of the agreement stipulate that Advocate Aurora Health will use Mach7's Enterprise Imaging Platform to store and manage images across its network of healthcare locations. Moreover, the company has also purchased the migration engine to migrate around 3.5 petabytes of data. 

Advocate Aurora Health is one of the 10 largest not-for-profit integrated health systems in the United States (US). The organisation encompasses 28 hospitals, 500 outpatient locations and 68 Walgreen's clinics across the Midwest states of Wisconsin and Illinois. 

Foolish takeaway

The agreement announced this morning is one of Mach7's largest to date in the lucrative US market. Furthermore, Advocate Aurora Health is now one of the company's largest customers in the US. 

Mach7 has been one of the best performing small-cap technology companies on the ASX in 2019, with its share price rising 229%. Other small-cap technology companies that have rewarded shareholders in 2019 include Audinate Group Ltd (ASX: AD8), Bigtincan Holdings Ltd (ASX: BTH) and Megaport Ltd (ASX: MP1).

As Mach7 continues to win new business, it remains a stock small-cap investors should at the very least be monitoring on their watch lists. Focus will now turn towards its quarterly business update, which is expected to be released before the end of July. 

Tim Katavic has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool Australia has recommended MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Highs

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
52-Week Highs

3 ASX 300 shares smashing new highs while the market dives

These three shares are running hot amid a market meltdown.

Read more »

Three hikers lift their arms in jubilation as they reach a rocky peak overlooking a sensational view of water and mountains with a blue sky surrounding them.
52-Week Highs

3 blue chip ASX 200 shares smashing new highs on Wednesday

These names are finishing the year strongly.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
ETFs

10 red-hot ASX ETFs that smashed new highs today

Do you own any of these lucky exchange-traded funds?

Read more »

Two kids stare open-mouthed at what's under their bed.
52-Week Highs

5 under-the-radar ASX 200 shares smashing new highs today

These shares are bucking the market big time.

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
52-Week Highs

10 ASX 200 shares smashing new highs while the market sinks

Do you own any of these market-defying stocks?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Travel Shares

Why the Qantas share price can keep flying to new highs

Qantas shares' new record highs are forecast to be broken in 2025 by this top broker.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Financial Shares

Why did the IAG share price just hit a 5-year high?

Shareholders of this insurance giant are smiling on Tuesday. What's going on?

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today
52-Week Highs

This ASX 200 stock just hit a 14-year high following an upgrade from Macquarie

You’d have to go all the way back to May 2010 to find the ASX 200 stock trading at higher…

Read more »