NetSol Technologies Inc. announced Wednesday a $16 million agreement to sell its NFS Ascent software system to an Asian customer, sending the company stock up 40 percent.
The Calabasas company, which makes software that helps auto dealers and lenders manage vehicle leases, said the contract will cover 2 million lease contracts. The name of the client was not released because of a non-disclosure agreement.
NetSol released the NFS Ascent software upgrade in October, and a few days later released disappointing earnings, resulting in multiple lawsuits that allege the company misrepresented the sales potential of NFS.
The $16 million contact will require 18 months for full implementation, with the software scheduled to go live in February.
“This is a major win for NFS Ascent, and we are extremely excited to be the solution partner for such a high volume and iconic finance business,” Naeem Ghauri, president of global sales for NetSol, said in a statement.
Shares closed up $1.11 to $3.88 on the Nasdaq.