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(Sharecast News) - Pennant International said on Friday that it had secured a multiyear software and services contract with the Canadian government worth an estimated CAD 15m over its initial five-year term.
The AIM-traded systems support software and training solutions company said the contract had been awarded to Pennant Canada for the use and optimisation of its Auxilium software suite in support of maritime programmes within Canada's Department of National Defence.
The framework has an initial five-year term, with annual options to extend it for a further six years.
Pennant estimated that the contract could be worth up to about CAD 35m if extended for the full 11-year period.
The agreement is not subject to a minimum value, with the estimates based on historical rates of departmental use of Pennant's integrated product support services.
Prices are fixed and include annual inflation adjustments.
Pennant said the scope included the continuation of existing work and incremental growth in revenue-generating services.
Auxilium combines the company's GenS, Analyzer and R4i applications into a single integrated solution.
Pennant said the software and its predecessor, OmegaPS, had been used extensively across the Canadian defence department since the early 1990s.
Chief executive officer Phil Walker said the award reflected Pennant's strong, long-standing relationship with the department.
"We are pleased to have secured this new framework contract with the Canadian DND in support of maritime programmes," he said.
"This award reflects Pennant's strong, long-standing relationship with the DND and supports the investment in the Auxilium suite."
At 1217 BST, shares in Pennant International Group were up 6.38% at 25p.
Reporting by Josh White for Sharecast.com.
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