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archTIS deepens relationship with Australian Department of Defence

The department has renewed its software subscription with archTIS subsidiary Nucleus Cyber, bringing annual revenues from the department to just shy of $1 million.

archTIS Ltd - archTIS deepens relationship with Australian Department of Defence
Renewal of this contract demonstrates the value, quality and uniqueness of the NC Protect product.

archTIS Limited’s (ASX:AR9) global information protection subsidiary Nucleus Cyber has renewed its annual software subscription licence with the Australian Department of Defence (DoD).

The renewal brings archTIS’ annual recurring subscription revenue from the department to $950,000.

archTIS completed its acquisition of Nucleus Cyber in December last year and has made progress quickly, expanding its Channel Partner Program into the booming European and Asia-Pacific cybersecurity markets.

Nucleus Cyber’s selling points are its NC Protect product and its Attribute-based access controls (ABAC) security model.

“Validation of our products”

archTIS global COO and US president Kurt Mueffelmann said the renewal reflected the value, quality and uniqueness of the NC Protect and ABAC security model within the Microsoft software stack for the DoD.

“I am delighted that the Australian Department of Defence has renewed its subscription of NC Protect to safeguard sensitive information,” he said.

“It’s great to provide immediate validation of our products and shared sales team capabilities so soon after the acquisition.”

Customer protection

The NC Protect solution uses existing technology to provide a more efficient and cost-effective way of tailoring information protection for file sharing, messaging and chat across an organisation’s collaboration tools – including Microsoft Office 365.

The annual contract value for NC Protect is just shy of $150,000 and is archTIS’ second software licence contract with the DoD in the 2021 financial year, as the department seeks to secure its information-sharing capabilities.

It follows a $4.2 million contract that archTIS won in September last year to lead risk reduction activities relating to cross-domain classified information sharing, which includes $750,000 in annual recurring revenues for archTIS’ flagship secure information-sharing platform Kojensi.

Relationship with defence sector

archTIS has had a long and healthy relationship with the defence sector.

Its managing director and founder, Daniel Lai, started the business in 2006 as the need for secure information sharing amongst intelligence agencies grew following 9/11 and the 2002 Bali bombings.

The company’s focus is on developing its Kojensi sales pipeline to commercial clients in the defence industry, as well as the space sector, and Mueffelmann said the acquisition of Nucleus Cyber strengthened the company’s reputation.

“Defence is a joint customer of Nucleus Cyber and archTIS, and their technology platforms and shared customer base validate this modern approach to protecting highly sensitive data across the world’s most classified networks,” he said.

Lai said the renewal proved the acquisition of Nucleus Cyber was beneficial for the company.

“It provides our customers with a range of policy enforcement products to secure and share their information assets,” he said.

“This renewal and our recent Kojensi sales strongly position archTIS as a key provider of information security products to the Australian Department of Defence.

“It’s an exciting time for archTIS as we continue to successfully execute our strategy to become the global leader of policy enforcement in the protection and sharing of sensitive and classified information,” Lai added.

- Daniel Paproth

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