Netsol’s stock price soaring after $100 million deal
NetSol Technologies, Inc. is a provider of information technology and enterprise software solutions. The company is owned by Pakistani-based tech giant Najeeb Gahuri.
The Company’s primary source of revenue is the licensing, customization, enhancement and maintenance of its suite of financial applications under the brand name NetSol Financial Suite (NFS) and NFS Ascent for businesses in the global lease and finance industry. The Company’s offerings include its global solution, NFS. The four software applications under NFS have been designed and developed for a setting, and deals with multinational, multi-company, multi-asset, multi-lingual, multi-distributor and multi-manufacturer environments. Each application is used independently to address specific sub-domains of the leasing/financing cycle. NFS and NFS Ascent have various applications, such as loan origination system, contract management system, wholesale finance system and fleet management system. It operates in three regions: North America, Europe and Asia-Pacific.
Company announced the signing of a contract currently valued at more than $100 million, which includes license, maintenance, services and expected customization, with a long-standing customer to implement NFS AscentTM.
The agreement calls for upgrading to NetSol’s NFS Ascent platform, the company’s advanced solution for the auto and equipment finance and leasing industry, from the company’s NFSTM platform in Australia, China, Hong Kong, India, Japan, New Zealand, Singapore, South Korea, Taiwan, Thailand and Malaysia. The contract also includes implementation of NFS Ascent in South Africa, a new market for NetSol. The implementation phase spans a five-year period, with maintenance and support over ten years.
Shares reached a new 52-week high on Monday , Analyst Ratings.Net reports. The company traded as high as $9.50 and last traded at $8.72, with a volume of 2,810,395 shares traded. The stock had previously closed at $6.40.
Netsol has been the topic of a number of research analyst reports. Zacks Investment Research upgraded NetSol Technologies from a “hold” rating to a “buy” rating and set a $6.25 target price on the stock in a report on Wednesday, October 28th. TheStreet upgraded NetSol Technologies from a “sell” rating to a “hold” rating in a report on Friday, October 16th.
The stock’s market cap is $66.07 million.
“This is a transformative agreement for NetSol, representing the largest contract in the company’s history, and a strong endorsement for NFS Ascent from a nearly two-decade-long partnership with our client,” NetSol CEO Najeeb Ghauri said in a statement. “The significant investments we made in our infrastructure and staffing are paying off and building leverage into our business.”