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Strategic agreements with GHD to implement and refer EVS Water

  • Strategic agreements with GHD to implement and refer EVS Water
  • Two strategic agreements with GHD for Envirosuite’s EVS Water to:
    • Implement and scale the solution for water facilities.
    • Leverage GHD’s global network to refer EVS Water to prospective clients.
  • Facilitates a step-change in the roll-out of Envirosuite’s pure SaaS, high margin product suite into a $2.8bn serviceable addressable market (SAM).

About the entity

Envirosuite is a trusted partner to major water utilities across the world. We build world-leading solutions that enable our customers to make responsible operational and development decisions with localised data and insights.

Leading environmental technology company Envirosuite 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. 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 existing Envirosuite customer and user of the EVS Water Plant Designer product, a comprehensive solution for the design and improvement of water and wastewater treatment infrastructure. The product provides a common standard for design across teams and increases the efficiency of the design process. GHD has begun to use the product for water treatment and desalination plants across APAC and it has been embedded as 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.  

Envirosuite enters a new phase in the roll-out of EVS Water with two new strategic agreements with GHD

Under the first of the two agreements, GHD will provide Envirosuite’s customers with technical support for EVS Water products, where these products require water process engineering expertise. GHD will also support research and development activities to assist with product improvements. By utilising GHD’s network, the Company expects to be able to scale more efficiently and deliver projects at higher margin than it can currently.

Under the second agreement, GHD will assist in delivering key components of EVS Water projects as well as refer potential customers to Envirosuite. As part of these delivery services, GHD will configure digital twins, and review model configurations to help ensure that digital twin projects are performing well and for the intended purpose. It is expected that the opening of a new sales channel has the potential to accelerate sales and support for all the products in the EVS Water suite.

The Agreements are expected to accelerate the implementation of EVS Water’s software in upcoming projects combined with GHD’s global reach and industry expertise that provides the capacity and market access to scale as the EVS Water solution gains momentum in the current $2.8bn SAM.  

EVS Water is rapidly emerging as a key pillar of the Company’s high margin, SaaS growth strategy that has entered a significant 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.

GHD has begun to use the product for water treatment and desalination plants across APAC

The Company expects the GHD relationship to be significant to EVS Water for the 2022 calendar year because of the value of securing a relationship with a company established in the water industry, opening a new sales channel and assisting the Company to scale its operations at a level it would not be able to achieve on its own. While the contracts do not specify minimum revenue nor referral targets, each site that is brought in via this new channel demonstrates both the market fit and long-term 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. 

CEO Jason Cooper comments: “GHD is an innovative global services company with deep domain knowledge in the water space with a stated commitment to helping solve the world’s biggest challenges in the areas of water, energy and urbanisation. These are the 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 Partnership, we will be able to implement EVS Water faster, scale our ability to deliver and provide additional expertise to our customers. The agreement will 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 benefit from GHD’s market reach and networks.”

GHD Water Market leader, Chris Hertle said, “We are delighted to be deepening our relationship with Envirosuite to combine our mutual strengths for the benefit of communities, industry and the environment in the universal field of water management. GHD has been using EVS water products since 2020 and we are currently 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 abovementioned contracts to be disclosed, nor any material conditions to be satisfied prior to the parties being legally bound to proceed with the contracts

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