CyanConnode wins largest ever order with $29m Ukraine deal
CyanConnode in Cambridge. which specialises in narrowband radio mesh networks, has received a $29 million order from its strategic partner NIK LLC for a smart metering contract in Ukraine.
The deal is significantly larger than any received to date by CyanConnode and takes the value of purchase orders received but not yet delivered to $100m.
This includes $33m of expected software licence and support revenue from a UK smart metering contract.
The Ukraine order is for a one million unit smart metering deployment to be delivered over the next three years.
CyanConnode will receive $13 million for the provision of hardware with the majority of deliveries expected to be weighted towards years two and three. Once each meter has been installed and is operational, the Head End Server software licence payments (to be made on a per meter per year basis) will kick in.
The HES payments will be made over the 10-year period post installation and will be worth $16m, providing the company with a recurring revenue stream. The deal is expected to open up huge swathes of eastern Europe for the company.
Market intel reveals that central and eastern European countries are forging ahead with investment in smart grid infrastructure with a reported $25.2 billion to be invested over the next 10 years. The overall number of electricity consumers in Ukraine is around 16.5 million, providing scope for further significant follow-on orders.
Executive chairman John Cronin said: “We are pleased to announce such a significant order from our partner, in a new geographic region.
“This latest contract win further demonstrates the suitability of CyanConnode’s award-winning technology for smart metering implementations and the scalability of its collaborative business model.”