Veris Lands Distribution Deal With $1.1B Software Giant Ahead of NASDAQ Listing
Veris secures geospatial distribution rights ahead of Octave’s NASDAQ listing
Veris has been appointed as Octave’s authorised Geospatial Distributor across Australia and New Zealand, expanding its existing relationship with the software business ahead of Octave’s planned NASDAQ listing in H1 CY2026. Octave, the proposed software spinoff from Hexagon AB — a global measurement technology leader with a market capitalisation of approximately US$25 billion — employs around 7,200 people, serves roughly 4,500 customers globally, and is expected to generate annual recurring revenues exceeding US$1.1 billion. The agreement positions Veris as the primary local channel partner for geospatial software customers in the region, with an initial recurring revenue base of approximately $1.2 million per annum.
Under the agreement, Veris will assume responsibility for customer engagement, licence management, renewals and frontline support, whilst Octave remains the software owner and licensor. Upfront costs to enter the arrangement were not material from Veris’ financial perspective. The appointment marks a shift from Veris’ previous services-based engagement with Hexagon into a broader role encompassing software sales, consulting, training support, renewals and customer management.
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What the distribution agreement means for Veris
The distribution agreement grants Veris access to an established customer base of Tier 1 industry and government clients across key target sectors including government, defence, utilities and infrastructure. Veris will act as the primary local channel partner, handling customer engagement, licence management, renewals and frontline support whilst Octave retains ownership and licensing rights for the software.
Revenue streams unlocked
The agreement creates multiple revenue opportunities for Veris:
- Annual software sales to new and existing customers
- Ongoing maintenance and support revenues from licence holders
- Consulting and training delivery engagements tied to software implementation
- Renewals and frontline customer management fees
The initial recurring revenue base is expected to be approximately $1.2 million per annum, primarily from existing software support and maintenance arrangements as customer accounts transition to Veris. Additional revenue contribution is anticipated from software renewals, new purchases, and associated services such as training, education and consulting post-licence sale. Over the medium term, and subject to market adoption, sales and execution, Veris believes the agreement has the potential to scale annual revenues significantly from this initial base.
Understanding geospatial software distribution models
A geospatial software distributor acts as the local sales and support channel for software products developed and owned by another company. In this arrangement, Veris does not own the software — Octave retains ownership and licensing rights — but Veris manages customer relationships, licence sales, renewals, training and frontline technical support across Australia and New Zealand.
This model differs from outright software ownership in that it requires minimal upfront capital investment whilst providing access to an established product ecosystem. For Veris, this means the company can generate recurring revenues from software-related services without the development costs, intellectual property risks, or ongoing maintenance burden associated with building proprietary software from scratch.
Recurring software revenues, including software-as-a-service (SaaS) and adjacent licence models, are typically valued more highly by investors than project-based consulting work. This is because recurring revenues offer greater visibility, predictability and customer retention, combined with higher gross margins once the initial customer acquisition and onboarding costs are absorbed. For Veris shareholders, this shift towards software-adjacent recurring revenues represents a move towards a more stable, higher-quality earnings profile.
Strategic alignment with Veris’ digital transformation focus
The distribution agreement aligns with Veris’ Digital & Spatial strategy to grow higher-margin, recurring digital and advisory-based software-adjacent revenues whilst deepening relationships with Tier 1 government, defence, utilities and infrastructure clients. The existing Octave customer base is strongly aligned to Veris’ priority markets, creating immediate revenue synergies and cross-selling opportunities.
The distributor model is complementary to Veris’ existing digital, spatial and advisory services. Software and maintenance support engagements are expected to drive demand for implementation, systems integration, data consulting and advisory services. Conversely, Veris’ advisory capability supports deeper software adoption, account expansion and long-term client retention, creating a self-reinforcing growth loop.
Michael Shirley, Managing Director and Chief Executive Officer
“This Agreement strengthens Veris’ role across the geospatial software lifecycle and builds on our long-standing relationship with Hexagon and now Octave as it carves its own path with its imminent NASDAQ listing in its own right.”
The existing Octave customer base includes Tier 1 industry and government body clients already operating geospatial software across government, infrastructure and defence sectors. This provides Veris with an established foundation to expand software-related revenues and implementation services over time.
Financial outlook and scaling potential
Veris expects an initial recurring revenue base of approximately $1.2 million per annum, primarily from existing software support and maintenance arrangements as customer accounts transition under the new agreement. Additional revenue contribution is anticipated from software renewals, new purchases and associated services such as training, education and consulting following licence sales.
Over the medium term, and subject to market adoption, sales and execution, management believes the agreement has the potential to scale annual revenues significantly from this initial base. Expansion opportunities include growing the existing customer base, cross-selling Veris’ broader service offering, and leveraging revenue synergies from Veris’ proprietary solutions and analytics being commercialised to new markets.
| Revenue Source | Description |
|---|---|
| Software support & maintenance | Recurring fees from transitioning customer accounts |
| Software renewals | Annual licence renewal revenue |
| New software sales | One-time licence purchases |
| Training & consulting | Implementation and education services |
The $1.2 million initial base provides a foundation, but the opportunity lies in scaling through the existing Tier 1 customer base and cross-selling Veris’ broader implementation, systems integration and advisory service offering. The capital-light nature of the distributor model means revenue growth does not require significant balance sheet deployment or upfront investment in software development.
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What comes next for Veris
Octave’s expected NASDAQ listing during H1 CY2026 represents a near-term catalyst that could raise awareness of the geospatial software market and indirectly benefit Veris’ positioning as the authorised ANZ distribution partner. The listing may also provide Octave with additional capital and visibility to support product development and market expansion, which could flow through to increased customer adoption in Veris’ territory.
The agreement positions Veris for deeper software-adjacent revenue growth over time, with the initial $1.2 million recurring revenue base providing a platform to scale through expanded software sales, renewals, training and consulting services. The established Tier 1 customer base across government, defence, utilities and infrastructure sectors provides immediate cross-selling opportunities for Veris’ digital, spatial and advisory services.
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