Eckoh‘s wholly owned subsidiary, Eckoh US, has signed two significant contracts, worth an estimated $7m in aggregate over their three-year terms.
The first contract has been secured through our US reseller partner and is a new three-year agreement for Eckoh to provide secure payment services to a global insurance company in the Fortune 500. The contract, which represents the second major US organisation secured through our partner in 2016, will see Eckoh provide its patented CallGuard tokenisation solution across 5,000 US-based contact centre agents employed by the corporation. The delivered solution, which is expected to be operational by the last quarter of the financial year, has a minimum value to Eckoh of $2m evenly spread across the three-year term. In line with the focus of our partnership on large enterprise customers, typically targeting the Fortune 500, this contract is the largest secure payments deal won in the US since Eckoh entered the market two years ago. It is further indication that momentum is not only building in terms of contract wins but also in value.
The second contract, which has been won by the Group directly, is a three-year agreement to provide a variety of contact centre infrastructure support services to a major US telecommunications company, commencing from July 2016. The contract will generate a minimum of $3m revenue over the three-year term but with anticipated revenue in excess of $5m.
This contract is underpinned by the services and capabilities secured through our acquisition of Product Support Solutions Inc (“PSS”) in November 2015. Whilst one of the key rationales for acquiring PSS was to support the anticipated growth of the Secure Payments business in the US, its established and profitable contact centre services business has since enabled us to create a sustainable US Customer Contact Solutions operation alongside that of Secure Payments. This win is clear assurance that there are both substantial and strongly profitable contracts to be won that will assist in the scaling of the overall US operation.
Nik Philpot, Chief Executive Officer at Eckoh, commented: “We are delighted to be announcing these two major US contracts simultaneously. They clearly illustrate the excellent progress we are making in driving forward our US operation since the acquisition of PSS last November.
We are now trading as a unified entity in the US, which is comprised of the business lines Secure Payments and Customer Contact Solutions mirroring that in the UK, and it is satisfying to see such substantial deals being won from both sides of the operation. The integration of PSS is nearing completion and these sizeable contracts demonstrate that the business rationale for being part of Eckoh is yielding returns at every level. We expect the substantial progress and growth achieved by the Group since the acquisition to continue throughout the remainder of the current financial year and beyond.”