The 10-year cellular wireless managed services deal with the Department of Homeland Security drives WidePoint’s stock sharply higher.
WidePoint Corp (WYY) secured an exclusive 10-year contract with the U.S. Department of Homeland Security for Cellular Wireless Managed Services 3.0, valued at up to $3.1 billion. The indefinite-delivery, indefinite-quantity (IDIQ) agreement includes a one-year base period followed by nine option years.
The contract marks a significant expansion for WidePoint, which previously held smaller federal deals. No prior consensus estimate was publicly disclosed, but the ceiling value exceeds the company’s current market capitalization by a wide margin.
Shares of WidePoint surged 91% in early trading following the announcement, reflecting investor optimism about the company’s growth prospects in the government sector.