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The contract sent shares of automation provider Exela Technologies up 39%

The share of the technology company Exela Technologies, Inc. ( XELA) at the auction on June 22 rose by 39.18% to $ 0.19; the market capitalization reached $60.90 million. The reason was the announcement of a large contract for the supply of payment processing tools. Exela Technologies announced a new major client: it managed to sign a three-year contract worth $136 million. 

As part of the deal, Exela will provide the services of its integrated Exchange for Bills and Payments (XBP) solution, which combines several of the company’s platforms, such as the DMR digital mail service, TMS for payment processing, and a set of Beats tools for organizing collaboration. XBP brings the primary income to Exela — in 2021, it was more than $874 million. Overall, the XBP addressable market is at more than $200 billion, so Exela has a lot of room for growth. 

Therefore, the news about attracting new customers, especially with large multi-year contracts, causes optimism among investors. Exela has a large set of tools for digital transformation, and at the grassroots level, for example, AI algorithms for automatic document classification and data movement in clouds and local storage. In the first quarter, Exela’s revenue grew by almost 7% year-on-year to $279.4 million, with a loss of $57 million. 

Repeat contracts made up 93%, and the company thinks this number will go up due to the COVID-19 crisis. The company’s capitalization is low, and it isn’t making any money. Still, investors sometimes notice her because of his skills in automating business processes. Exela’s clients include medical and government organizations, educational institutions, and financial and legal firms.

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