archTIS Secures $3.2M Defence Contract to Expand Kojensi Licensing
archTIS has locked in a $3.2 million contract with the Australian Department of Defence, renewing Kojensi Enterprise licensing and boosting application development and maintenance services. This deal underpins a key source of recurring revenue and strengthens archTIS’s foothold in Defence’s classified ICT environment.
- A$3.2M contract with Australian Department of Defence
- Includes A$1M annual recurring software licence revenue
- A$2.2M for application development and maintenance services
- 12-month term starting July 2026 with extension options
- Reinforces archTIS’s strategic position in Defence ICT
Renewed Commitment to Kojensi Enterprise
archTIS Limited (ASX:AR9) has secured a $3.2 million contract from the Australian Department of Defence that not only renews the licensing of its Kojensi Enterprise software but also expands the scope of application development and maintenance services. Valued at A$1 million annually in recurring licence fees and A$2.2 million in services, the deal cements archTIS as a key supplier within Defence’s sensitive information collaboration environment.
Contract Structure and Strategic Significance
The 12-month contract starts on 1 July 2026 and includes options for Defence to extend it twice more by 12 months each, at its discretion. While Defence retains the right to terminate the contract for convenience, the award reflects a sustained commitment to Kojensi, which is deployed on-premises within Defence’s highest-security classified ICT infrastructure. This ongoing relationship underlines archTIS’s role as an incumbent provider of policy-enforced information security software tailored to government needs.
Driving Annual Recurring Revenue Growth
CEO Daniel Lai highlighted the contract as a clear endorsement of archTIS’s ARR growth strategy. “Defence has not only renewed Kojensi Enterprise, but they are investing to expand Kojensi. This award builds on archTIS’ long-standing relationship with Defence and an unbroken run of successive contract awards within the agency,” Lai said. The deal’s blend of sticky recurring licence revenue and sizeable services work offers a robust revenue base to support future growth.
Platform Evolution and Market Positioning
archTIS continues to invest in Kojensi’s development to keep pace with evolving information security demands from Defence and allied agencies. The platform’s government certification and focus on secure collaboration in classified environments differentiate it in a competitive cybersecurity landscape. This contract award signals confidence in Kojensi’s ability to meet Defence’s operational needs and positions archTIS well for further deployments and user expansion.
Bottom Line?
archTIS’s renewed Defence contract reinforces its strategic role in secure government collaboration software, with future contract extensions and platform enhancements key to sustaining growth.
Questions in the middle?
- Will Defence exercise the contract extensions beyond the initial 12 months?
- How will archTIS’s ongoing Kojensi enhancements influence future licensing uptake?
- Can archTIS leverage this Defence win to accelerate growth in allied government markets?
