Ava Risk Group’s cybersecurity technology to protect Indian military network
Ava Risk Group has secured a deal worth up to $15.2 million to supply its FFT Secure Link technology to the Indian Ministry of Defence.
Security risk management company Ava Risk Group (ASX: AVA) has been picked to protect a major military data network under a cybersecurity deal potentially worth up to $15.2 million.
The company today announced its Indian manufacturing partner, SFO Technologies Private Ltd, has been issued a letter of intent to manufacture Ava’s FFT Secure Link technology for the Indian Ministry of Defence.
The project will cover one of the world’s largest closed user group data networks, exclusively used by more than 1 million military personnel.
Ava has licenced the manufacturing of its network security technology to SFO, meaning the latter will take on all of the manufacturing costs, associated working capital and delivery risk under the award.
In addition, SFO will pay Ava a licence fee for each system supplied for the project, generating an estimated revenue between US$10.5 million and US$11.1 million ($14.4 million and $15.2 million).
According to Ava, about $8 million in revenue is anticipated for the 2019 financial year (depending on the final cost of goods and delivery schedules) with the remaining revenue expected in fiscal 2020.
The issued letter of intent has estimated that SFO will receive the formal purchase order by the end of this month.
Ava chief executive officer Chris Fergus said as well as introducing a new major customer, this project win demonstrates the breadth of the company’s risk management solutions into adjacent markets.
“Our Ava Group intrusion detection solutions have previously been selected to protect sensitive military, government and utility data networks in the United States, Australia and the Middle East, providing advance warning of attempted breaches and enables asset owners to quickly take preventative action,” he said.
According to Ava chairman David Cronin, the need for the company’s network security technology was reflective of the growing threat to the world’s data.
“Government, military and commercial end users are increasingly becoming aware of the potential for illegal tapping, and physical disruption, of their sensitive data,” he said.
“This deployment is an important milestone for the company, showing a clear return for shareholders on the investment we have made in increasing its geographic and market segment reach,” Mr Cronin added.
Shares in the group were up 10% to $0.165 by close of trade.