TORONTO – IT manager Softchoice Corp. (TSX:SO) says it has been awarded a purchase agreement with the U.S. Department of the Navy worth a maximum of US$700 million.
The Toronto-based company – which works with organizations to select, acquire and manage their software and hardware technology resources – said Friday it won the contract to provide the U.S. Navy with Microsoft software licensing and software services.
There were five competitors for the contract, which runs through 2015.
The agreement was tendered through the U.S. federal government General Services Agreement.
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“As one of the largest Microsoft agreements in North America, this marks a major milestone in broadening our relationship with the Department of the Navy,” said David MacDonald, president and CEO of Softchoice.
“While this was a very competitive bidding process, the real opportunity for Softchoice is in competing on future services and solutions opportunities as we help the Navy execute its IT strategy.”
Softchoice shares jumped 6.4 per cent or 73 cents to $12.11 Friday on the Toronto Stock Exchange.
Ontario Teachers’ Pension Plan Board announced in January that it sold its entire stake in Softchoice for about $51 million. In doing so, the pension group, which had previously owned about 25.7 per cent of Softchoice’s common stock, severed a 10-year relationship.
It has more than 1,150 employees in more than 46 branch offices.
Softchoice develops information technology solutions for more than 14,000 small and medium-sized businesses. Its software includes networking, security, education and licensing products.
It partners with brands such as Apple, Hewlett-Packard, Intel, IBM and Cisco Systems.
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