• Straker renews and expands its strategic partnership with IBM for 3 more years
• Contract value expected to be around NZ$28 million over the initial 3-year term
• Partnership to focus on deploying Straker's AI-driven solutions across IBM's global operations

Straker Limited (ASX: STG), a global leader in AI-powered translation solutions, has announced the renewal and expansion of its strategic partnership with International Business Machines Corporation (IBM) (NYSE: IBM). The agreement has been extended for a further three years, effective 1st January 2026, with IBM holding the option to extend the agreement for an additional one-year term beyond the initial three years. The expected contract value is approximately NZ$28 (US$16.1) million over the initial three-year term, based on anticipated volumes. The renewal reinforces the strength of the relationship between Straker and IBM, which first began in January 2021 when Straker was appointed as IBM's Strategic Translation Service Provider. 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. The partnership has also broadened beyond localisation services, with Straker now recognised as part of the IBM Ecosystem Partner network. A key focus of the expanded partnership is the joint development of customised small language models, which are being built on IBM Cloud using IBM's watsonx AI technology and Straker's proprietary Tiri platform. Early results are highly encouraging, with the jointly developed models already demonstrating superior performance against industry benchmarks.

The expected contract value is approximately NZ$28 (US$16.1) million over the initial three-year term, based on anticipated volumes.