Global investment firm EQT has bought a majority stake in Sydney-headquartered MSP Nexon Asia Pacific.
Founded in 2000, Nexon is an end-to-end managed IT provider with services ranging from cloud, secure networks, unified communications, managed security, business solutions and digital workspace solutions.
The company focuses on the mid-market and government sectors, and has over 400 customers including high-profile brands such as Lowes, Oporto and Red Rooster. Major vendor partners include Microsoft, Cisco, NetApp, ALE, VeloCloud, Poly, Veeam and Enghouse.
The company didn’t disclose the terms of the acquisition, other than to say Nexon’s co-founder and CEO Barry Assaf will remain a “significant shareholder” and the existing management team will stay on.
“With our unwavering commitment to service, innovation and delivery, we are excited to enter our next phase of growth,” said Assaf.
“EQT will provide both the capital and competence needed to rapidly grow our solution offerings and to innovate.”
EQT also offered a glimpse at its plans for Nexon. Its strategy will be to further develop Nexon’s IT services, grow its customer portfolio and continue seeking acquisition targets.
“We are impressed with Nexon’s experienced management team, deep service development focus, strong recurring revenue profile and leading position in the mid-market and government segment,” said EQT partner Tak Wai Chung.
“Nexon is an attractive platform to drive consolidation in a fragmented market. EQT’s expertise within the TMT and services sectors, coupled with a strong network of Industrial Advisors will support Nexon’s management team and employees in its next phase of growth and transformation.”
Nexon has acquired a few companies itself in the past. In late 2016, Nexon bought fellow Sydney-based MSP Blue Central, and last year bought another Sydney MSP in Cavalry as it looked to boost its hosted desktop, hybrid cloud consulting and managed services offerings.
EQT’s investment came from its EQT Mid Market Asia III trust, which looks to invest in companies in the region with an enterprise value between US$30 million and US$250 million.