Adacel Technologies secures $7m contract for military training solutions
Adacel Technologies, an Australian provider of advanced air traffic management solutions and simulation and training systems, has bagged a contract valued at approximately $7 million over an 11-year period.
The contract win is said to mark a major milestone for the company, having emerged victorious from a highly competitive selection process.
Under the terms of the contract, Adacel Technologies will deliver a comprehensive suite of solutions to a military organization hailing from a NATO nation.
The contract stipulates that approximately 35% of the total value will be realized within the first 12 months following the signing. The remaining balance will be earned throughout the contract’s duration, subject to the achievement of specific milestones and the provision of support services. Standard termination clauses, typical for agreements of this nature, are included in the contract.
Daniel Verret — Adacel Technologies CEO said: “We are immensely proud to have been chosen for this major military program. Our MaxSim Simulation and Training systems have garnered the trust of military organizations worldwide, offering state-of-the-art ATC simulation software that trains and certifies their air traffic controllers.
“With our expertise and unwavering commitment, we eagerly anticipate delivering and supporting a fully integrated MaxSim system that meets the customer’s current and future ATC training needs.”
The timing of the contract award and delays in finalizing a contract renewal with another existing customer necessitate a revision of Adacel Technologies’ FY2023 earnings guidance. The company now projects an EBITDA range of $3 million to $3.2 million, along with a PBT range of $1 million to $1.2 million.
Adacel Technologies had previously identified six multi-year simulation and training system opportunities, each valued at over $100 million. In addition to the recently awarded contract, the company secured another significant contract from Broward College in Fort Lauderdale, Florida, which was not initially included in the identified opportunities.
The Broward College contract involves the delivery of a cutting-edge ATC training system, incorporating Adacel Technologies’ cloud-based ATC training solution and leveraging Virtual and Mixed Reality technology to enhance distance learning and elevate students’ educational experience. These contract wins position Adacel Technologies favorably as it pursues additional contracts outlined in its strategic plans.
With its continued success in securing prestigious contracts, Adacel Technologies solidifies its position as a leader in the field, providing advanced solutions for air traffic management and simulation and training systems.