iExela Technologies (NASDAQ:XELA) stock is soaring higher on Tuesday following news of a major cloud deal for the company.
Exela Technologies revealed in a press release that it has signed a $90 million deal with a major U.S. health insurance company. It doesn’t reveal the name of this company. However, it does note that the deal is set to last for 10 years.
Exela Technologies will be offering up its PCH Global platform to this health insurance company. This will have it handling automation technologies, SaaS, and services. That will come from a mix of on-site and cloud services.
Exela Technologies also mentions that this deal is part of a larger relationship that resulted in $28 million in revenue for 2020. The services offered by the company allow for “greater scalability and business continuity protections, as well as improved data analytics built into the platform and accessible via a self-service model.”
Suresh Yannamani, president of XELA, said this about the positive news for the company’s stock today.
“The combination of proprietary technology, global service delivery and industry expertise, positions Exela as a leader in enrollments, complex claims processing, appeals and grievance management and payment solutions. Our goal has been to set ourselves apart by developing PCH Global as a complete payment integrity solution for the insurance industry, handling everything from claims ingestion and validation, to correspondence, adjudication and payments.”
XELA stock is experiencing heavy trading thanks to today’s news. As of this writing, more than 252 million shares have changed hands. That’s a major increase over its daily average trading volume of 4.9 million shares.
XELA stock was up 136.4% as of Tuesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
