Why the Archtis (ASX:AR9) share price is rocketing up today

The Archtis share price soared 25% higher today after the cyber security company announced a deal with the Australian Defence Force.

| More on:
Digital screen depicting padlock overlaid on circuit board

Image source: Getty Images

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 Archtis Ltd (ASX:AR9) share price has rocketed today as the company announced a landmark deal with the Australian Department of Defence. The Archtis share price soared 25% higher to 52.5 cents in early afternoon trade before dropping back to 50 cents at the time of writing.

What Archtis does

Archtis is a Canberra-based cyber security technology company that specialises in the safe design and development of cloud based, secure information management and collaboration software. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian government clients.

In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.

Landmark contract win for Archtis

Archtis's share price was sent flying today as the company announced a $4.2 million deal with the Australian defence department. It includes three licences of the Archtis Kojensi platform and will be used to perform risk reduction activity for multinational information sharing and cross domain services. The risk reduction activity will be conducted over the next 12 months. It will include development, building and accreditation activities to provide defence.

Furthermore, it will provide an information-sharing architecture pattern for cross and multi domain services between different allied partners. Thus the contract has the potential to springboard Archtis into prominence as its product will be shared with other large allied nations.

This is the company's largest contract to date, reflecting its growing maturity and the defence force's commitment to investing in premium sovereign information security capabilities.

Archtis CEO Daniel Lai said:

I am delighted that Archtis has been selected to lead this risk reduction activity. The need to share, control and trust information in the warfighter domain, between forces and with allies remains a critical requirement and archTIS is well-positioned to deliver on this.

What now for the Archtis share price?

The Archtis share price has performed exceptionally well this year to date with the growing awareness around cyber security providing a strong tailwind. Archtis's share price is currently up 300% so far this year.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »

Woman and man calculating a dividend yield.
Share Market News

Big week for markets: Here's what to watch

Tech earnings, rate speculation, and Aussie inflation data could shake markets this week — but long-term investors should keep their…

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

dissapointed man at falling share price
Share Fallers

Why Boss Energy, Elsight, Pilbara Minerals, and Whitehaven Coal shares are falling today

These shares are starting the week in the red. But why?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Broker Notes

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Share Market News

ASX 200 tech stock near record high, is it still a buy?

This company's soaring share price and rising profits are turning heads.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »