A subsidiary of IT company Spyrosoft has won a BBC tender for a three-year collaboration to expand the broadcaster’s IT engineering team. The value of the contract is expected to exceed £20 million.
Spyrosoft said in a stock exchange release that its subsidiary had been selected in a two-part tender on 23 November. A standstill period for the results of the tender expired on 4 December.
“The BBC’s selection of the bid submitted by Spyrosoft means that the parties will be entitled to enter into a three-year framework agreement with an option to extend for two further twelve-month periods. The object of the agreement will be for Spyrosoft to provide services to expand the BBC’s IT engineering team. The conclusion of a final cooperation agreement in the above regard is subject to the parties’ acceptance of the final terms of the agreement,” the release said..
Collaboration will be carried out on a time-and-material basis, whereby the BBC will incur a fee for the work actually performed. Spyrosoft estimates the revenue potential from such a collaboration over the term of the agreement to be approximately £3.5 million in the first year of the collaboration and up to approximately £10 million in each subsequent year of the agreement, depending on the BBC’s allocation of work.
In the third quarter of this year, Spyrosoft’s group achieved a year-on-year increase in revenue from £91.46m to £105.71m, while its net profit decreased from £12.36m to £5.4m.