Vection seals Retelit deal to boost AI sales in Europe
Thu, 15th Oct 2026 (Today)
Vection Technologies has signed a multi-year supply agreement with Italian telecommunications and digital services provider Retelit. The deal commits Retelit to generate at least €12 million, about AUD $19.5 million, in revenue from Vection's products by the end of the term.
Running to 2030, the agreement covers Vection's Algho AI, Renderia and 3DFrame software platforms, along with its kiosks, touchpoints, on-premise edge appliances and Accessibility System.
Retelit has also been appointed a Tier 1 partner in Vection's Cloud & Digital Service Provider Program, allowing it to sell Vection's technology directly to end customers and through its dealer network across Italy and Europe.
The agreement is aimed at enterprise demand for data sovereignty, with customer data intended to remain within Italian and European borders. It also includes a compliance framework linked to the General Data Protection Regulation and the EU AI Act, which are shaping how organisations in Europe buy and deploy artificial intelligence systems.
Existing rollout
The supply agreement builds on an existing commercial relationship between the two groups. In July, Retelit placed an order worth about AUD $3.2 million after certifying Algho AI as its enterprise AI platform.
Two Algho AI appliances are now operating at Retelit's DC Avalon 3 data centre. They are being used to provide AI agent and model services for business and government customers.
Retelit brings a network of data centres and backbone infrastructure to the partnership, giving Vection a route to customers across Italy and wider Europe. It has also recently acquired the Sparkle network, which the parties said strengthens data residency options for enterprises using AI services.
The wider Retelit Group is part of the consortium behind AAE-1, a 25,000-kilometre submarine cable linking Europe with Southeast Asia through a landing station in Bari. That infrastructure forms part of the broader network footprint supporting the group's digital services operations.
Revenue milestones
The revenue commitment is split across three milestones. Retelit is expected to generate €3 million by the end of 2027, a further €4 million by mid-2029 and another €5 million by mid-2030.
The agreement is non-exclusive, and detailed commercial terms have not been disclosed.
For Vection, the arrangement adds a distribution partner with established enterprise access in a market where organisations are under increasing pressure to address data governance and regulatory requirements in AI deployments. It also gives the Australian-listed company a larger presence in Europe, where rules on data handling and AI oversight are more developed than in many other markets.
The company operates in enterprise AI and spatial computing, with products used in areas such as training, product design, operations support and customer engagement. The new agreement bundles software and hardware, including appliances designed to let enterprises process AI workloads within their own facilities rather than relying entirely on external cloud environments.
That on-premise option is likely to appeal to organisations that need tighter control over sensitive information, particularly in regulated industries and public sector settings. The inclusion of kiosks and touchpoints in the contract also suggests the partnership extends beyond back-end AI services into customer-facing and workplace applications.
Vection recently reported revenue of AUD $42 million and adjusted EBITDA of AUD $3.8 million for its latest financial year. It said that represented a 596% increase in adjusted EBITDA and marked its first positive full-year operating cash flow.
Jacopo Merli, Executive Director & COO Global of Vection Technologies, commented on the arrangement. "Thanks to this agreement, Vection Technologies positions its technologies at the service of the Retelit Group, which, thanks to its next-generation Data Centre network and proprietary Backbone, will be able to offer our AI to the thousands of Enterprises in their customer base, guaranteeing data sovereignty across Italian and EMEA territory thanks to the Sparkle network, which recently joined the group," said Merli.