Straker Limited (ASX: STG) Announces Extension and Expansion of IBM Partnership
Straker (ASX: STG) announced a 3-year renewal with IBM (NYSE: IBM) effective 1 January 2026, extendable by one year, with an expected contract value of approximately NZ$28 million (US$16.1m) over the initial term based on anticipated volumes. The deal runs to December 2028 and continues usage-based revenue terms, with IBM retaining a 90-day termination right. The renewal expands the partnership into the IBM Ecosystem Partner network, shifts a significant portion toward AI token billing, and notes ~10,000 IBM users of Straker's AI Slack translation app. The companies will jointly develop customised small language models on IBM Cloud using watsonx and Straker's Tiri platform, with early results reportedly outperforming benchmarks.
Straker (ASX: STG) ha annunciato una rinnovo triennale con IBM (NYSE: IBM) efficace dal 1 gennaio 2026, estendibile di un anno, con un valore contrattuale previsto di circa NZ$28 milioni (US$16,1 milioni) per l arc o periodo iniziale in base ai volumi previsti. L'accordo ha validità fino a dicembre 2028 e mantiene i termini di ricavi basati sull'uso, con IBM che mantiene un diritto di risoluzione di 90 giorni. Il rinnovo espande la partnership nel network IBM Ecosystem Partner, sposta una porzione significativa verso fatturazione basata su AI token, e nota circa 10.000 utenti IBM dell'app di traduzione Slack AI di Straker. Le aziende svilupperanno congiuntamente modelli linguistici piccoli personalizzati su IBM Cloud usando watsonx e la piattaforma Tiri di Straker, con i primi risultati che, secondo quanto riferito, superano i benchmark.
Straker (ASX: STG) anunció una renovación de 3 años con IBM (NYSE: IBM) vigente desde el 1 de enero de 2026, extensible por un año, con un valor de contrato esperado de aproximadamente NZ$28 millones (US$16,1 millones) durante el término inicial en función de volúmenes anticipados. El acuerdo se extenderá hasta diciembre de 2028 y mantiene los términos de ingresos basados en el uso, con IBM conservando un derecho de terminación de 90 días. La renovación amplía la asociación al network de IBM Ecosystem Partner, desplaza una porción significativa hacia facturación por tokens de IA, y señala ~10,000 usuarios de IBM de la aplicación de traducción AI Slack de Straker. Las empresas desarrollarán conjuntamente modelos lingüísticos pequeños y personalizados en IBM Cloud usando watsonx y la plataforma Tiri de Straker, con resultados tempranos que supuestamente superan los benchmarks.
스트레이커(Straker, ASX: STG)가 IBM(NYSE: IBM)과의 3년 재계약을 2026년 1월 1일부로 발효하며, 1년 연장 가능하고, 초기 기간 동안 예상되는 물량에 근거해 약 NZ$28백만(미화 1610만 달러)의 계약 가치가 예상됩니다. 계약은 2028년 12월까지이며 사용기반 수익 조건을 유지하고, IBM은 90일 해지권을 보유합니다. 이 재계약은 IBM 에코시스템 파트너 네트워크로의 파트너십 확장을 통해, 상당 부분이 AI 토큰 청구로 이동되고, Straker의 AI Slack 번역 앱의 약 1만 IBM 사용자를 언급합니다. 양사는 IBM Cloud에서 watsonx와 Straker의 Tiri 플랫폼을 사용해 맞춤형 소형 언어 모델을 공동 개발하고, 조기 결과는 벤치마크를 능가하는 것으로 보고됩니다.
Straker (ASX: STG) a annoncé un renouvellement de trois ans avec IBM (NYSE: IBM) efficace à partir du 1er janvier 2026, renouvelable d'un an, avec une valeur contractuelle estimée à environ NZ$28 millions (US$16,1 millions) sur la période initiale en fonction des volumes anticipés. L'accord court jusqu'en décembre 2028 et continue les conditions de revenus basés sur l'utilisation, IBM conservant un droit de résiliation de 90 jours. Le renouvellement étend le partenariat dans le réseau IBM Ecosystem Partner, déplace une part importante vers facturation par jetons IA, et mentionne environ 10 000 utilisateurs IBM de l'application de traduction Slack IA de Straker. Les entreprises développeront conjointement des petits modèles linguistiques personnalisés sur IBM Cloud en utilisant watsonx et la plateforme Tiri de Straker, avec les premiers résultats dépassant apparemment les benchmarks.
Straker (ASX: STG) kündigte eine dreijährige Verlängerung mit IBM (NYSE: IBM) an, gültig ab dem 1. Januar 2026, mit einjähriger Verlängerungsmöglichkeit, und ein voraussichtlicher Vertragswert von ca. NZ$28 Millionen (US$16,1 Mio.) über die ursprüngliche Laufzeit basierend auf erwarteten Volumen. Das Abkommen läuft bis Dezember 2028 und setzt die nutzungsbasierte Umsatzstruktur fort, wobei IBM ein 90-Tage-Kündigungsrecht behält. Die Verlängerung erweitert die Partnerschaft in das IBM Ecosystem Partner-Netzwerk, verschiebt einen erheblichen Teil in Richtung AI-Token-Abrechnung und vermerkt ca. 10.000 IBM-Nutzer der Straker AI Slack Übersetzungs-App. Die Unternehmen werden gemeinsam maßgeschneiderte kleine Sprachmodelle auf der IBM Cloud unter Verwendung von watsonx und Strakers Tiri-Plattform entwickeln, wobei frühe Ergebnisse Berichten zufolge Benchmarken übertreffen.
سترايكر (ASX: STG) أعلن عن تجديد لمدة 3 سنوات مع IBM (NYSE: IBM) ساري المفعول اعتباراً من 1 يناير 2026، قابل للتمديد لمدة عام واحد، بقيمة عقد مقدرة بحوالي NZ$28 مليوناً (US$16.1 مليون) خلال الفترة الأولية اعتماداً على الأحجام المتوقعة. يستمر الاتفاق حتى ديسمبر 2028 ويحتفظ بشروط الإيرادات القائمة على الاستخدام، مع احتفاظ IBM بحق الإنهاء خلال 90 يوماً. يجدد هذا التمديد الشراكة في شبكة IBM Ecosystem Partner، وينقل جزءاً كبيراً نحو الفوترة عبر رموز الذكاء الاصطناعي، ويشير إلى حوالي 10,000 مستخدم IBM لتطبيق Straker للترجمة عبر Slack بالذكاء الاصطناعي. ستعمل الشركات معاً على تطوير نماذج لغوية صغيرة مخصصة على IBM Cloud باستخدام watsonx ومنصة Tiri الخاصة بـ Straker، مع تقارير تفيد بأن النتائج المبكرة تفوقت على المعايير.
- Contract value ~NZ$28M over initial three-year term
- Revenue visibility secured through Dec 2028 (subject to volumes)
- 10,000 IBM users already using Straker Slack translation app
- Significant shift to AI token billing to drive AI revenue
- Joint development of customised small language models on watsonx
- IBM retains a 90-day termination right
- Revenue is usage-based and may vary period-to-period
- Contract value is approximate and based on anticipated volumes
Insights
Renewal and expansion with IBM secures multi-year revenue visibility and shifts more sales to AI-driven models.
Straker gains a renewed, three-year agreement with **IBM** effective
The commercial upside depends on actual volumes processed, IBM’s right to terminate on 90 days’ notice, and the pace of adoption of Straker’s AI offerings inside IBM’s operations. The expansion into the IBM Ecosystem Partner network and management via **IBM Japan** strengthens distribution, but the press release also states revenue variability and termination rights which temper guaranteed cash flow.
Watch three concrete items over the next 12–36 months: adoption trends for the AI token billing model and realised revenue per token, monthly or quarterly volumes that drive the stated
Agreement Renewal – 3-Year Extension
IBM has renewed its existing agreement with Straker for a further three years, effective 1st January 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 approximately NZ
The renewal reinforces the strength of the relationship between Straker and IBM. 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.
Expanded Strategic Partnership
Straker's collaboration with IBM has broadened beyond localisation services, with Straker now recognised as part of the IBM Ecosystem Partner network. The relationship will be primarily managed through IBM Japan, further strengthening Straker's integration within IBM's innovation and technology ecosystem.
Joint Development of Small Language Models
A key focus of the expanded partnership is the joint development of customised small language models. These are being built on IBM Cloud using IBM's watsonx AI technology and Straker's proprietary Tiri platform. Together, Straker and IBM are advancing model development, training, and deployment.
Early results are highly encouraging, with the jointly developed models already demonstrating superior performance against industry benchmarks. This validates both the commercial value of specialised small language models and the broader opportunities for collaboration in enterprise AI beyond translation.
CEO Comment
Grant Straker, CEO of Straker, said:
"IBM has been a cornerstone customer for Straker since 2021. Its decision to yet again extend our relationship with a renewal for a further three years and expand the scope of the partnership provides both validation of our strategy and a strong foundation for future growth. Together, we are not only transforming translation services with AI-powered solutions but also opening the door to broader enterprise AI opportunities. Our partnership with IBM is expanding from service delivery into co-innovation, strengthening our position at the intersection of language and AI. For Straker, this renewal reinforces our strategic transition toward a business model underpinned by AI-driven revenue and innovation."
Disclosure Statement
Straker confirms this announcement contains all material information relevant to assessing the impact of the contract and is not misleading by omission.
Authorisation
This announcement has been authorised for release by the Board of Straker Limited.
Corporate: Investors:
Grant Straker, CEO & Co-Founder Ben Henri
E: grant@straker.ai E: ben.henri@mcpartners.com.au
P: +64 21 512 484 P: +61 473 246 040
David Ingram, CFO
E: david.ingram@straker.ai
P: +64 21 591 984
Melissa Hamilton
E: melissa.hamilton@mcpartners.com.au
P: +61-0417750274
About Straker
Straker provides next generation language services supported by a state-of-the-art technology stack and robust AI layer to clients around the world. By combining the latest available technologies with linguistic expertise, Straker's solutions are scalable, cost-effective, and accurate. Through technical innovation and data analytics, Straker is a proven partner in future-proofing global communications.
For more information visit: www.straker.ai
View original content:https://www.prnewswire.com/news-releases/straker-limited-asx-stg-announces-extension-and-expansion-of-ibm-partnership-302599538.html
SOURCE Straker Ltd
FAQ
What did Straker (ASX: STG) announce with IBM on October 30, 2025?
How long does the Straker–IBM agreement run and when does it take effect?
How will the Straker–IBM deal affect Straker's revenue model?
What material value is attached to the renewed IBM contract for Straker (ASX: STG)?
What product and technical collaboration did Straker announce with IBM?
Are there any termination or risk clauses investors should note in the IBM renewal?
