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Azeus clinches contract worth $179.9 mil from Hong Kong government

Felicia Tan
Felicia Tan • 2 min read
Azeus clinches contract worth $179.9 mil from Hong Kong government
This is the single largest contract secured by Azeus so far.
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Hong Kong-based IT services and software products provider Azeus Systems has been appointed by the Office of the Government Chief Information Officer to design and develop its central electronic recordkeeping system over a 53-month period for the Hong Kong special administrative region (SAR) government on May 9.

The total contact value stands at HK$1.02 billion ($179.9 million), making this the single largest contract secured by the company so far.

Under the terms of the contract, Azeus will cover the design and development of the recordkeeping system with a total implementation price of HK$633.9 million.

It will also cover the system’s maintenance and support for ten years, which comes up to around HK$381.4 million.

According to the company, the development of the system will help the Hong Kong government comply with legal and records management requirements and preserve documentary heritage.

The core of the recordkeeping system is based on Convene Records which is a content and records management product designed and developed by Azeus.

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The product will be customised for this project.

Of the total contract value, an estimated 75% is for the license and maintenance fees of the Convene Records software, which is based on the number of users and the number of departments estimated by the government.

The actual total contract value will be subject to change by the government upon its confirmation of these two numbers in the course of the project.

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The design and implementation work will begin in May; the group expects majority of the revenue to be contributed to its next FY till FY2037.

Lee Wan Lik, executive chairman of Azeus Group, says, “We are elated to have secured this contract based on Azeus Product ‘Convene Records’, to support the central electronic recordkeeping system government-wide.”

“We are deeply encouraged as this not only shows the Hong Kong SAR government’s trust in the capability of Azeus in delivering a strategic and mega IT services project, but also in the software products designed and developed by Azeus,” he adds.

The latest contract will also “further enhance our recurring income stream for resilient growth,” Lee continues.

“Our product-based and recurring business has been growing year-on-year. This award will materially boost our product revenues, increasing over the next few years as we roll out the system across the whole of Hong Kong SAR government,” says Michael Yap, CEO of Azeus Group.

Shares in Azeus closed flat at $6.20 on May 6.

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