Nexion announced an agreement to acquire New Zealand IT companies Aiscorp and Silicon, which will provide local resources and expertise to help deliver contracts with bluechip NZ customers and provide a foundation for Nexion’s planned expansion into Canada.
The Perth-based colocation and networking provider said in an ASX announcement that the acquisitions would triple the size of Nexion.
The company said its pro forma revenue for fiscal 2022 was $18.3 million. Aiscorp and Silicon’s combined unaudited revenue at the end of New Zealand Financial Year 2022 (31 March 2022) was $11.71 million and EBITDA was $1.12 million , assuming NZD/AUD assuming an exchange rate of 0.90 cents.
Nexion Group CEO Paul Glass said the acquisition of the two cloud infrastructure service providers in the region would support its goal of becoming a global hybrid cloud operator and SD-WAN infrastructure provider.
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“Aiscorp and Silicon are exceptional companies with a long history of providing services in the Pacific region and will continue to operate as independent and complementary members of the Nexion group.”
“Nexion’s vision is to provide services in eight regions around the world and the completion of these acquisitions lays the foundation for our second region called NEXION Pacific, which stretches from the east coast of Australia to the west coast of Australia. North America.”
“Our next stop is Canada, so a base in Wellington makes acquisitions and growth in that time zone much more efficient.”
Glass said that since Nexion launched its $8 million IPO in 2020 and then went public in February 2021, it has continued its global expansion through a combination of acquisitions and organic revenue growth. .
For example, Nexion acquired Perth-based telecommunications provider Blue Sky Telecom for $2 million in 2021 and saw strong first-half revenue growth from an expansion of its hybrid cloud customer base in March this year.
The purchase is subject to conditions such as the completion of due diligence, Nexion obtaining the approval of its board of directors, shareholders, regulator and third parties and the lifting by Nexion of at least $7.425 million in cash through debt and/or equity, Nexion said.
Settlement occurs when all conditions are met and if conditions remain unsatisfied after November 30, 2022, either party may terminate the agreement.
Upon termination, if Nexion’s stock price is less than 20 cents, a stock adjustment amount will be issued to account for the valuation shortfall.