The new contract, which replaces an existing deal between the two parties that was due to expire at the end of 2008, will come into effect on July 1 and could run until December 2018, should all options be exercised. Under the agreement, EDB will develop and implement new banking systems in association with SpareBank 1, as well as migrating bank operating services from a mainframe to a Unix environment.
In 2006, EDB generated approximately 44% of its total revenue from the banking and finance sector, making it the company’s largest vertical market. Major customers include DnB, Union Bank of Norway, Sandnes Sparebank, and Handelsbanken.
While the contract is the largest EDB has secured in over three years, it is not the biggest win in its history. In March 2004, the company secured a five-year deal with Norwegian telecoms operator Telenor worth NOK 3.7bn ($620.9m) in new revenue.
