Western Australian software specialist Servtech Global (ASX:SVT) has inked a development deal with fellow Australian esports provider Emerge Gaming (ASX:EM1) as part of its play for the African market.
The publicly-listed custom software development firm’s India-based subsidiary Technobrave was awarded the two-year services contract agreement with the Perth-headquartered Emerge Gaming, to manage the development and maintenance of its esports platform Arcade X.
The deal sees the company, which specialises in web and mobile application software development services, assist Emerge Gaming with IT development support to customise the esports firm’s platform for a launch with what it claims is Africa’s largest mobile network operator, MTN Group.
With a start date of 1 May, the agreement commits Emerge Gaming to a minimum spend of around $500,000 with Servtech over the next two years.
Servtech told shareholders that the deal with Emerge Gaming represents the largest development contract the company has secured since its inception in late 2016 as the holding company of a number of wholly-owned subsidiary companies, including Technobrave.
"We are pleased to secure this long-term agreement with Emerge Gaming following the successful two-month trial to assist with their MTN customisation,” Servtech general manager Simon Ingleson told investors.
“The team exceeded all expectations and key deliverables and I am confident this contract will showcase the talent, capabilities and professionalism of the Servtech development team and assist in securing similar large-scale development projects contracts both locally and internationally, in the months ahead.
“I look forward to working with the team at Emerge Gaming to deliver outstanding technology outcomes over the next 24 months,” he said.
Shareholders were also told that the deal will be “fundamental” in positioning Servtech as a full-blown technology solutions provider, attracting more development over the coming months, positioning the company for further growth and expansion.
However, this latest deal is not the company’s first software development win. On 18 September 2017, Servtech announced the signing of a software development contract with the Real Estate Institute of Western Australia.
Under that service agreement, Servtech was engaged to develop a new consumer-focused mobile application. The Real estate Institute of WA project is also being executed through the company’s Technobrave subsidiary.