Hubify (ASX:HFY) HFY and Optus sign five-year deal with $2.28m payment to HFY

Hubify has signed a new five-year agreement with Optus to sell its Enterprise Services to Australian businesses, with an estimated annual revenue of $12 million.

The company will exit the Optus Small Business Program in May 2023, receiving a $2.28 million termination payment, which will increase its cash position to over $4.6 million.

The exit from the Small Business Program and a restructure will result in annual administration cost savings of $1.69 million and a new annualized recurring revenue run rate of $17.8 million.

Hubify's focus will be on the Enterprise Market segment as it scales its Managed Services and Professional Services divisions in the Mid-Market and Enterprise segments.