Accel Solutions Group Ltd. announced that its subsidiary, Danet Communications Ltd., (80% owned), won Israel?s largest network security tender from a major Israeli customer. The project will supply cybersecurity and information security products and services from Palo Alto Networks to protect the customer?s critical network infrastructure in Israel. The engagement period is three years, with an option for cumulative annual extensions of up to three additional years, for a total potential term of approximately six years.
The exercise of the extension option is subject to the customer?s discretion. As of the date of this press release, the company cannot accurately estimate the exact revenues that will be generated during the tender period. However, subject to receiving binding purchase orders, the company estimates that the total cumulative revenues during the entire tender period could be significant and may reach approximately NIS 250?500 million, assuming full exercise of the extension option.
It should be noted that as of today, no binding purchase orders have been received for the supply of the above products and services, and therefore the above forecast is only an estimate and does not constitute a binding commitment by the customer. The company believes that winning this tender is part of the group?s strategic direction and, subject to receiving binding orders, it is expected to contribute significantly to the growth of the group?s sales in the coming years and reflects confidence in the technological capabilities of Danet and the group. The company further believes that following this win, Danet may receive additional orders from other organizations in Israel for network security products and services.
