Veris Limited has expanded its relationship with Hexagon’s Octave by becoming the authorised geospatial software distributor across Australia and New Zealand, aiming to generate an initial $1.2 million in annual recurring revenue.
- Exclusive Octave distributor for Australia and New Zealand
- Initial recurring revenue estimated at $1.2 million per annum
- Expands Veris’ role from services to software sales and support
- Aligned with core government, defence, utilities, and infrastructure markets
- Octave plans NASDAQ listing in first half of 2026
Veris Moves Into Software Sales with Octave Deal
Veris Limited (ASX:VRS) has taken a significant step beyond its traditional service offerings by securing an exclusive agreement to become the authorised distributor of Octave’s geospatial software across Australia and New Zealand. Octave, a proposed software spinoff from global measurement technology giant Hexagon AB, is targeting a NASDAQ listing in the first half of 2026, marking a major milestone for the business and its partners.
This deal transforms Veris’ relationship with Hexagon from a services-based engagement into a broader role that includes software sales, consulting, training, renewals, and frontline customer management. The arrangement positions Veris as the primary local channel partner responsible for customer engagement and licence management, while Octave retains ownership of the software.
Recurring Revenue and Strategic Market Fit
Financially, Veris expects this partnership to deliver an initial recurring revenue base of approximately $1.2 million per annum, primarily through existing software support and maintenance contracts transitioning to Veris. Beyond this foundation, there is potential for significant growth driven by new software sales, renewals, and ancillary services such as training and consulting.
The deal aligns neatly with Veris’ strategy to grow capital-light, recurring digital and advisory revenues, particularly within government, defence, utilities, and infrastructure sectors. The distributor model complements Veris’ existing digital and spatial advisory services, creating opportunities for cross-selling and deeper client engagement. As Veris CEO Michael Shirley noted, the arrangement "creates a clear pathway to grow recurring software revenues and to expand the delivery of implementation, systems integration and advisory services over time."
Leveraging Existing Digital Growth Momentum
This expansion into software distribution builds on Veris’ recent strong performance in digital and spatial services. The company reported a 29% surge in spatial revenue in H1 FY26, reflecting a strategic pivot towards higher-value digital advisory services and a growing client base in key sectors. This momentum, documented in Veris’ recent 29% surge in spatial revenue, provides a solid foundation for scaling the new software-related revenue streams.
Veris also anticipates that software and maintenance engagements will drive demand for its broader consulting and advisory offerings, reinforcing long-term client relationships and enhancing account expansion opportunities. The partnership with Octave thus represents both a revenue diversification and a strategic deepening of Veris’ footprint in geospatial technology markets.
Risks and Market Dependencies
While the initial recurring revenue estimate is promising, it depends heavily on the successful transition of existing customer accounts and market adoption of Octave’s software in the region. The broader opportunity also hinges on Octave’s planned NASDAQ listing and its ability to establish itself as a standalone software entity. Veris’ upfront costs to enter the agreement are reportedly immaterial, but execution risk remains around scaling sales and support capabilities.
Overall, the deal signals Veris’ intent to evolve beyond its traditional services into higher-margin, software-adjacent revenue streams, a shift consistent with broader industry trends toward digital transformation and recurring revenue models.
Bottom Line?
Veris’ exclusive Octave distribution deal opens a new revenue chapter, but scaling will depend on Octave’s market success and Veris’ execution.
Questions in the middle?
- How quickly can Veris scale recurring software revenues beyond the initial $1.2 million base?
- What impact will Octave’s NASDAQ listing have on Veris’ growth opportunities in ANZ?
- Will Veris leverage this deal to expand into other software or digital solutions markets?