- NEXION (NNG) will buy New Zealand information technology companies Aiscorp and Silicon Systems, tripling the size of the company to $18.3 million pro-forma FY22 revenue
- The company believes the combination of the two companies’ expertise and local knowledge sets a foundation capable of delivering rapid growth and strong profits across the group
- CEO Paul Glass says he is “extremely excited” to have Aiscorp and Silicon join the company
- The purchase is subject to conditions including completion of due diligence, approvals and the company raising at least $7.245 million cash via debt or equity
- Shares in NEXION hold steady at 8.4 cents on July 22
Hybrid cloud service provider NEXION (NNG) will acquire New Zealand information technology companies Aiscorp and Silicon Systems, tripling the size of the company to $18.3 million pro-forma FY22 revenue.
The company believe the combination of the two companies’ expertise and local knowledge sets a foundation capable of delivering rapid growth and strong profits across the group.
Further, it sets a foundation for revenue growth in the Pacific region and a stepping stone to the Americas.
Aiscorp and Silicon are highly experienced information technology and cloud infrastructure service providers in the region with skills that complement NEXION, said CEO Paul Glass.
“Aiscorp and Silicon are outstanding businesses with long histories of delivering services in the Pacific region and will continue to operate as independent, complimentary members of NEXION Group.
“NEXION has a vision to deliver services in eight global regions and the completion of these acquisitions sets the foundation for our second region called NEXION Pacific that spans the East Coast of Australia to the West Coast of North America.
“Our next step is Canada so a base in Wellington makes acquisitions and growth into that time-zone much more efficient.”
Key terms of the acquisitions include paying a minimum number of shares calculated at 1.1 times the FY22 revenue divided by 20 cents per share with the vendors able to take up-to 42 per cent of the valuation in cash.
The purchase is subject to conditions including completion of due diligence, approvals and the company raising at least $7.245 million cash via debt or equity.
NEXION is in negotiations with an equity funder to provide up to $8 million in capital at a five per cent discount to the-then share price on a 30-day volume-weighted average price (VWAP) basis and is also pursuing investment from existing shareholders.
Shares in NEXION held steady at 8.4 cents on July 22.