Wireless tracking solutions specialist Starcom said it has entered into a three year supply and support agreement with Xplosive Solutions to sell ‘Kylos Forever’ units for the protection and tracking of livestock in South Africa and Australia.
The AIM-traded company said the initial order was for 1,500 units, which could be increased under the agreement to 15,000 units per year.
It said the total order value, if the agreement is fully implemented, would be approximately $3.5m over three years.
In addition to revenue from sales of units, Starcom would also provide its online tracking software system, generating software-as-a-service revenues of an average of $1 per month per unit connected.
Starcom said it expected that SaaS revenues over the three years would be approximately $0.8m if the agreement is fully implemented and all units connected, making a total contract value of $4.3m over three years.
Starcom described Xplosive Solutions as a South African company which – amongst other things – provides perimeter security solutions including CCTV to farmers in South Africa and Australia.
It said it had been working with the company for “several months” to integrate its Kylos Forever tracking system onto a dedicated cattle collar designed by Xplosive.
“The board is excited by this new agreement which should lead to further opportunities in the protection of livestock in many parts of the world and once again demonstrates the way in which the technology developed for our various products can be adapted to suit many needs,” said Starcom’s CEO Avi Hartmann