The 5G Networks Ltd (ASX:5GN) share price is running higher today. This comes after the company announced its selection by a South Australian government panel to provide IT infrastructure services.
During mid-morning trade, shares in the telecommunications carrier are up 5.82% to $1.46.
What did 5G Networks announce?
In today’s release, 5G Networks advised that it will become the strategic supplier to the South Australian government managed platform services panel. This in-turn allows state government agencies to buy key infrastructure and cloud services from 5G Networks.
The extended relationship with South Australia is expected to boost the company’s coffers to more than $300 million. In return, 5G Networks will deliver managed platforms and public cloud management services such as Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).
Previously, the company provided managed hosting and infrastructure services to the South Australia government for several years.
Management commentary
5G Networks general manager of sales, Joe Gillett, welcomed the new agreement, saying:
We are delighted to continue our relationship with the SA Government as a strategic supplier for critical infrastructure services. In working closely with SA agencies for many years, we now look forward to the next phase in the journey by enabling new innovative models of service delivery.
The panel will also benefit from our direct investment in South Australia as we further develop our managed infrastructure platforms. This includes the continued development of the 5GN Cloud platform in Adelaide, which provides hybrid cloud services across both private and public clouds.
5G Network share price performance
Over the past 12 months, the 5G Network share price has lifted 34%. Its shares hit a low of 54 cents in March, before climbing to an all-time high of $2.44 in August.
Based on the current share price, 5G Network commands a market capitalisation of around $167 million.
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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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