Spacetalk Expands Market Reach with Talius Group Partnership
SPA (SPA) Share Update September 2024 Sunday 29th
Spacetalk Partners with Talius Group to Expand mPERS Device Market
Spacetalk Limited (ASX: SPA) has announced a significant partnership with Talius Group Limited (ASX: TAL) to exclusively distribute its Life Mobile Personal Emergency Response System (mPERS) devices in Australia and New Zealand.
Instant Summary:
- Spacetalk signs exclusive reseller agreement with Talius Group.
- Talius Group to distribute Spacetalk Life mPERS devices in Australia and New Zealand.
- Partnership aims to capture a share of the $21.5 billion aged care market in Australia.
- Expected to contribute to Spacetalk's goal of $20-25 million in Annual Recurring Revenue by 2026.
- Sales and marketing to begin in Q2 FY25.
Partnership Details
Spacetalk Limited has entered into an exclusive reseller agreement with Talius Group Limited, aiming to expand the market reach of its Life Mobile Personal Emergency Response System (mPERS) devices. This partnership is a strategic move to capture a significant share of the rapidly growing aged care market in Australia, valued at $21.5 billion.
The agreement designates Talius Group as the exclusive distributor of Spacetalk Life mPERS wearables in both Australia and New Zealand. Marketing and sales efforts are set to commence in Q2 FY25, targeting both existing Talius subscribers and new customers in the aged care sector.
Market Impact
Spacetalk projects that this partnership will lead to the sale of thousands of devices annually, along with a corresponding increase in Spacetalk App and Spacetalk Mobile subscribers. While the financial impact is not immediately quantifiable, the company anticipates that this agreement will significantly contribute to its goal of achieving $20-25 million in Annual Recurring Revenue (ARR) by 2026.
Executive Comments
Simon Crowther, CEO and Managing Director of Spacetalk, expressed enthusiasm about the partnership, highlighting Talius Group's established relationships within the aged care industry. 'The partnership with Talius Group is exciting because it will enable us to help more older Australians live happier, healthier, and longer lives with the Spacetalk Life wearable,' Crowther stated.
Graham Russell, Managing Director of Talius Group, echoed this sentiment, emphasizing the alignment with the recent Aged Care Bill that encourages the use of technology to support ageing Australians at home. 'Adding the Spacetalk Life mPERS device to the Talius suite now extends the connected home care offering to truly keep people safer for longer in their own home,' Russell commented.
This partnership is expected to positively impact Spacetalk's stock by expanding its market reach and increasing sales. The exclusive distribution agreement with Talius Group leverages their established relationships in the aged care sector, potentially accelerating Spacetalk's revenue growth. Investors may view this as a strategic move to capture a larger share of the growing aged care market, which could enhance long-term shareholder value.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the potential for increased market penetration and revenue growth. The partnership with Talius Group is seen as a strategic alignment that could drive significant sales and subscriber growth. However, some caution may be exercised until the financial impact becomes more quantifiable.
Conclusion:
Investors should keep an eye on the rollout of this partnership in Q2 FY25 and monitor its impact on Spacetalk's revenue and market share. This strategic move positions Spacetalk to capitalize on the growing demand for aged care technology, potentially leading to substantial long-term gains.