IBM renews agreement with Straker for three more years

Straker announced the renewal and expansion of its strategic partnership with IBM (IBM). IBM has renewed its existing agreement with Straker for a further three years, effective January 1, 2026. IBM holds the option to extend the agreement for an additional one-year term beyond the initial three years. The expected contract value is $16.1M over the initial three-year term, based on anticipated volumes. Revenue under the agreement will continue to be based on customer usage and therefore may vary from period to period. Following Straker’s appointment as strategic translation service provider to IBM commencing January 2021 IBM exercised its option in November 2022 to extend that agreement for a further three years. The latest renewal, out to December 2028 provides Straker with continued revenue visibility over the initial three-year term, subject to volumes processed. The agreement also provides IBM with the right to terminate on 90 days’ notice. While the core terms of the agreement remain consistent with the prior agreement, the renewal includes an accelerated focus on deploying Straker’s AI-driven solutions across IBM’s global operations where there are already 10,000 users using Straker’s AI driven Slack translation application. A significant portion of the agreement will move to AI token billing further driving Straker’s AI revenue.