Australian Virtual Reality (VR) specialist ServTechGlobal Holdings Ltd (ASX:SVT) has signed a partnership and distribution agreement with leading Italian software an IT services provider Altea Federation targeting net revenues of A$1.7 million over the next three years.
Gianmarco Biagi, Managing Director of ServTech said the agreement is a maor coup for the company with AlteaFederation partnering with key strategic companies such as SAP, PTC, Dassault Systemes, Infor and Microsoft.
“The partnership agreement with Altea Federation is a key milestone for the Company in its shift from a product-based model towards a subscription based, software-as-a-service model.
“With global virtual reality adoption growth, AlteaFederation is a strategic partner, pivotal in the affirmation of FrameS as a leading VR visualisation software for global businesses.”
Mr Biagi said that while the ability to generate these future revenues is dependent on Altea Federation successfully selling the company’s SaaS products, AlteaFederation have put forward minimum net target revenues of A$1,700,000 over three years with A$400,000 to be achieved before December 2020.
Of Altea Federation’s revenue target, 50% is anticipated to be derived from the sale of FrameS, Vection’s real-time Virtual Reality software-as-a-service (recurring subscription revenue).
Under the terms of the agreement, Altea Federation will retain exclusive rights to market Vection’s products and services to specific industry segments, being the Automotive, Fashion and Machine building segments, provided that it meets minimum net revenue targets.
Andrea Ruscica, Founder and President of Altea Federation, said his company considers FrameS to be a game changing software, set to revolutionise product manufacturing processes leveraging a proprietary virtual reality technology.
This agreement enables Altea Federation to leverage its significant in-market presence and 1,300 resources to deliver strong sales results across the automotive, fashion and machine building industry segments.”