Exclusive Networks announces NEXTGEN Group acquisition
Exclusive Networks (Euronext Paris: EXN), a
global leader in cybersecurity, announced the signature of a binding agreement
for the acquisition of 100% of the share capital of NEXTGEN Group, a leading
hyper-growth channel services company focused on cybersecurity, data resiliency
and digital enterprise in Australia and New Zealand with presence across APAC.
Headquartered in Sydney, Australia, NEXTGEN was founded in 2011 and
has 190 employees across APAC. In FY-23, ending June 30th, 2023, NEXTGEN
generated Gross Sales of AU$266m (€160 m), with expected double-digit
growth for the years to come.
This operation fits perfectly with Exclusive Networks' external growth
strategy.
NEXTGEN presents a promising hyper growth vendor portfolio, coupled with
a wide array of services. This value-enhancing transaction will make Exclusive
Networks a clear go to market leader in Australia and New
Zealand generating commercial and financial synergies thanks to the
complementarity nature of the two companies.
The combination of NEXTGEN and Exclusive Networks will offer unique
end-to-end value-added channel management services, supported by real-time data
analytics and AI-backed insights, benefiting the entire APAC region and
providing Exclusive Networks with the ability to roll-out digital channel
services at a global scale.
NEXTGEN's strong expertise in cloud migration assessment, digital
marketing and lead generation solutions will expand Exclusive Networks' value
proposition by leveraging NEXTGEN's in-house state-of-the-art platforms and
developed initiatives with hyperscalers, laying the foundations for the next
phase of growth.
Following the acquisition, Exclusive Networks' presence in Australia and New
Zealand will be more than doubled and, based on FY pro-forma figures as
of Dec 31, 2023, the combined entity would have represented gross sales of
around €615m in APAC, a region with attractive growth prospects and a total
addressable market estimated at $10 bn in 2023[1].
The closing of the transaction is subject to customary conditions
precedent and is expected to be finalized during the second quarter of 2024.
Jesper Trolle, CEO of Exclusive Networks, commented, "This
acquisition is a major step forward in our growth strategy in APAC, it
significantly strengthens our business and allows us to expand and develop
further our value proposition. We are very pleased to welcome John Walters and
NEXTGEN's highly talented teams to the Group and look forward to working with
them. Together, we will aim to create a regional leader and break new ground.
The combination of resources and experience will help accelerate our growth and
competitiveness in this very dynamic market and beyond."
John Walters, Founder and CEO of NEXTGEN Group added, "To
capture the next phase of NEXTGEN Group's exciting growth, we had to find the
right global partner that brings the appropriate investment into our model and
aligns with our culture. Exclusive Networks, led by Jesper, aligns strongly
with our shared ambitions and values, including a passion for innovation and an
entrepreneurial spirit.
After 13 years of building a business from start-up, it is with great
confidence and enthusiasm that we begin this new phase with Exclusive Networks.
This step marks the start of an exciting new chapter in which our growth will
be accelerated by the resources and expertise of a global cybersecurity leader."
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