Proactis signs 3-year contract with major German DIY retailer
(LON:PHD ) announced that it has signed a 3-year contract with an unnamed major German DIY retailer to provide its business spend management solution.
The business spend management solution provider said the win represents ‘a strategically important milestone’ as the second new German customer to sign up under that new strategy.
Proactis, whose solutions are used in around 1,000 global buying organisations from the commercial, public and not-for-profit sectors, said the solution will be deployed in Germany initially before being rolled out into new territories through Central and Eastern Europe.
As announced previously, the Group adopted a new go-to market strategy for each of its US, France and Germany territories which is designed to replicate that of the UK and Netherlands.
In its FY20 results released last month, Proactis noted that it had made ‘substantial headway’ after seeing the first sales of its mid-market single platform solution in Germany and France.
The group cited a ‘record year’ in new business total contract value ("TCV") after securing an aggregate of £14.6m (FY19: £11.3m), a 29% increase secured in ‘virtually all markets.’
Shares in Proactis Holdings have increased by over 20% in value since the beginning of September 2020 to open 0.63% higher this morning at 40.25p following the announcement.
Proactis said this demonstrates ‘the effectiveness of its strategy, the resilience of the business model and the ability of its teams to deliver despite a change in working practices.’
"The fact Proactis has been selected by a major German multinational retail business demonstrates the quality of our offering,” said Tim Sykes, Chief Executive at Proactis.
Sykes noted that today’s contract win is “further validation” of the group’s new go-to-market strategy in Germany which highlights the relevance of its solution for that market.
He added, “We are excited to establish a long-term partnership with this customer and look forward to supporting its deployment of our software throughout Europe."
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