CBT Systems has won a contract worth up to $100 million (#98 million) from Unisys Corporation, an information technology company, to design, develop and administer a training programme. The market reacted by pushing the shares up $1.62 to $18.75 on the Nasdaq.
The five-year agreement involves a guaranteed commitment of some $25 million. In addition, CBT will re-sell third-party instructor-led courses to Unisys, the value of which has not been quantified. However, CBT said this is "expected to significantly exceed the guaranteed portion of the agreement". Industry sources said the total contract could be worth some $100 million.
Annualised, the contract could add about 12 per cent to CBT's 1998 sales. If group margins are maintained, net profits could grow by a similar percentage.
The programmes will be offered to employees through Unisys University, the employee training division of Unisys Corporation. Under the agreement, CBT will manage certification programmes for Unisys, covering offerings from Microsoft, Cisco, Lotus, Novell and other companies. The contract value associated with the resale of instructor-led training courses will, CBT said, be based on Unisys's purchases of these courses over the duration of the agreement.
"We believe that Unisys and CBT Systems have created a model that refines how learning is provided in many major enterprises around the world," said Mr Gregory Priest, president and chief executive officer of CBT Systems.
