Vection Technologies Signs European Smart City Framework Deal with URBANnext

Vection Technologies (ASX: VR1) has secured a three-year framework agreement worth at least $7.5 million with Swiss technology company URBANnext SA to commercialise its Algho AI platform across European smart city, infrastructure, and urban services markets.

The agreement carries a minimum annual purchase commitment of $2.5m, establishing a committed revenue floor over the initial term while allowing additional orders to increase the total contract value.

URBANnext will offer Algho licences, professional services, systems integration, implementation, maintenance, and support to public authorities and private sector clients through individual project orders issued under the framework.

The structure advances Vection’s indirect sales strategy by giving Algho access to established European customer relationships without requiring the company to build the same reach through direct sales alone.

European Channel Expands Reach

URBANnext develops and integrates digital platforms for cities and public agencies across urban management, sustainability and citizen services.

Its focus on Internet of Things integration, data analytics, and digital ecosystems aligns with Algho’s capacity to operate across complex, multi-system environments involving numerous stakeholders.

Each deployment will be governed by a separate order and technical-commercial proposal, creating a pipeline that can expand as customers move from initial projects into broader implementations.

The minimum commitment provides Vection with a base level of contracted revenue, while the value above $7.5m will depend on the number, timing, and scale of projects completed during the three-year term.

Algho Platform Gains Traction

The agreement follows a $3.2m order from Italian enterprise technology provider Retelit Digital Services earlier this month after Algho completed formal testing in a live data centre environment.

Retelit installed two dedicated Algho AI appliances at its DC Avalon 3 data centre and certified Vection as a preferred AI technology provider for services delivered to business and government customers across Italy.

The order was fully recognised in the 2026 financial year and gave Algho a reference platform role across Retelit’s corporate, public administration, and small-to-medium enterprise customer base.

Together, the Retelit deployment and URBANnext framework demonstrate two complementary routes to market for Algho through direct enterprise infrastructure integration and channel-led expansion into European public-sector and urban services markets.

Longer-Term Growth Supported

Vection expects smart city and infrastructure programs to expand over time as pilot projects demonstrate value and customers broaden their requirements.

“The $2.5m annual minimum is a committed floor, not a forecast ceiling,” managing director Gianmarco Biagi said.

"Smart city and infrastructure programs are inherently multi-phase—the structure of this agreement is designed to participate in that growth over a three-year horizon."

"URBANnext brings existing relationships in smart city and urban infrastructure markets across Europe, markets where the requirements around integration complexity, data governance and multi-stakeholder coordination are precisely the conditions Algho was designed for.”

“Adding a partner of this profile to our channel extends Vection's commercial reach into market segments we would not access as efficiently through direct sales alone—that is what an effective channel partner looks like in practice, and this agreement reflects the kind of partnerships we intend to continue building."