Leading environmental technology company Envirosuite Limited was extremely excited as they announced the commencement of two strategic agreements with GHD.
Envirosuite enters a new phase in the roll-out of EVS Water with two new strategic agreements with GHD, one of the most highly regarded consulting groups in the global water industry, amongst other sectors, with 200 offices on five continents.
Envirosuite and GHD to implement agreements
Under the Agreements, GHD will support the scaling of implementation of EVS Water for major water treatment facilities as well as refer prospective clients to Envirosuite.
GHD is an Envirosuite client of the EVS Water Plant Designer product, a comprehensive solution for the design and improvement of water and waste water treatment infrastructure.
Therefore, the product facilitates providing of a common standard for design across teams and increases the general efficiency of the design process.
GHD has begun to use the product for water treatment and desalination plants across the Asia Pacific region and it has been embedded as an integral part of business-as-usual design practices for the water treatment and desalination group within GHD.
The referral program will support Envirosuite’s pursuit of the water market with EVS Water, focusing on drinking water, desalination, and industrial water treatment industries.
Under the first of the two agreements, GHD will provide Envirosuite’s clients with technical support for EVS Water products, where products require water process engineering expertise.
GHD will support research and development so as to assist with product improvements.
By utilising GHD’s network, Envirosuite is expecting to be rendered able to scale more efficiently and facilitate delivery of projects at a higher margin than it does currently.
Under the second agreement, GHD will assist in delivering key components of EVS Water projects as well as refer potential customers to Envirosuite.
GHD will also configure digital twins and review model configurations so as to help in ensuring that digital twin projects are performing well and for their intended purpose.
It is therefore expected that the opening of a new sales channel has the potential to accelerate sales and facilitate providing support for all the products in the EVS Water suite.
The Agreements will accelerate the implementation of EVS Water’s software in more projects combined with GHD’s global reach and industry expertise for the capacity and market access to scale as the solution gains momentum in the $2.8bn South Asia market.
EVS Water is emerging as a key pillar of the Envirosuite’s high margin, SaaS growth strategy that has entered an expansion phase in its development with initial contracts in place for each of the software offerings in the product portfolio and a rapidly building pipeline.
Envirosuite expects the GHD relationship to be significant to EVS Water for 2022 due to the value of securing a relationship with a company established in the water industry.
GHD will furthermore be crucial in helping to open new sales channels and assisting Envirosuite to scale its operations at a level it would not be able to achieve on its own.
The contracts don’t specify minimum revenue nor referral targets but each site brought in via this channel demonstrates the market fit and viability of the EVS Water products.
The Agreements have 30 day termination-for-convenience clauses and are for a 12-month term, with the ability to extend. It is anticipated that the revenues arising from a direct result of the Agreements with GHD will not be material to the group revenues in FY22.
The EVS Water product suite was commercialised in Q1 FY22 and it is anticipated that revenues as a direct result of the relationship with GHD will be material to EVS Water revenues.
The Company has undertaken to shareholders in its 2021 Annual Report that it will update the market on significant progress points in the commercialisation of EVS Water.
The board considers that entering into the Agreements with one of the world’s largest and most recognised water consulting experts is a significant validation of the Company’s investment in technologies and connects with an established global distribution network.
Comments from Envirosuite and GHD
Jason Cooper, the Chief Executive Officer at Envirosuite gave additional insights.
“GHD is an innovative company with deep domain knowledge in the water space with a stated commitment to helping solve challenges in the areas of water, energy and urbanisation.”
“These challenges are the very same challenges we are trying to solve for our customers and their communities so there are great synergies to be gained from the Partnership.”
“With the GHD partnership, we will be rendered able to implement the EVS Water system faster, scale our ability to deliver and provide additional expertise to our customers.”
“The agreement will therefore open the door for revenue opportunities for both companies and allow EVS Water to more quickly attack a multi-billion dollar global market in a more cost-effective manner as we gain benefits from GHD’s market reach and networks.”
Chris Hertle is the GHD Water Market leader and he expressed excitement with the project.
“We are delighted to deepen our relationship with Envirosuite and combine our mutual strengths for the benefit of communities, industry and the environment in water management.”
“Since 2020, GHD uses EVS water and we are embedding it into our design workflows.”
“We recognise the power of EVS Water to add significant value to the objectives of major water projects and we are excited to be collaborating to implement the technology.”
For the purposes of Guidance Note 8 of the ASX Listing Rules, the Company confirms there are no other material provisions of the above mentioned contracts to be disclosed, nor any material conditions to be satisfied prior to the parties being legally bound to proceed.