Technology provider AD1 Holdings (ASX: AD1) has secured a contract with Australia’s Department of Defence to pilot a wellbeing program delivered by subsidiary company Art of Mentoring.
The 12-month deal is valued at more than $130,000 and is in addition to two other contracts that Art of Mentoring currently holds with the government agency.
AD1 chief executive officer Brendan Kavenagh said it solidifies the subsidiary’s “outstanding growth performance” over the past year.
The contract also positions Art of Mentoring as a preferred provider to federal, state and local governments for mentoring software and services.
Art of Mentoring provides programs designed to empower organisations to shift culture and develop their people.
The company employs a state-of-the-art, customisable SaaS (Software as a Service) platform to streamline administration and enable high-impact, strategic mentoring which delivers measurable results for clients such as Toyota, JB Were and the Australian HR Institute.
Solutions include the creation of more effective onboarding procedures for new employees, better engagement and retention, higher productivity, greater collaboration and stronger leadership teams.
Art of Mentoring’s evidence-based methodology is reported to have helped more than 20,000 people become better mentors, have more successful mentoring relationships and run more effective mentoring programs using a combination of educational materials, skill building workshops, smart technology and consulting.
AD1 acquired Art of Mentoring a year ago in a deal expected to create a “more diversified recurring revenue stream” moving forward.
The terms of the deal saw AD1 issue a $1 million upfront cash payment and a further $500,000 in shares.
Since then, Art of Mentoring has signed 21 new clients and experienced a 100% renewal rate from existing clients since the start of July.
“With this kind of growth acceleration, we are expecting an exciting future for the company,” Mr Kavenagh said.
Research estimates the employee experience software market to be worth about $18.2 billion.
Mr Kavenagh said Art of Mentoring’s solution was “uniquely suited” to address the market’s growing need for structured mentoring programs.