A New Chapter for Nexon Asia Pacific
In a significant move for the Australian IT services sector, Sydney-based private equity firm Adamantem Capital has reached a deal to acquire digital IT service provider Nexon Asia Pacific from Swedish private equity group EQT. This transaction brings Nexon back into Australian ownership after a six-year period under EQT’s guidance. While the financial details of the acquisition have not been disclosed, the deal is a testament to Nexon’s substantial growth under EQT’s ownership, which saw the company’s revenue increase by more than 500% since 2019. The acquisition remains subject to regulatory approvals.
A Period of Transformative Growth
EQT‘s investment in Nexon, beginning in July 2019, was instrumental in driving the company’s comprehensive transformation. Under the leadership of CEO Barry Assaf, who is expected to remain in his role, Nexon expanded both organically and through eight strategic acquisitions. These “bolt-on” acquisitions, which included companies like Liveware Solutions and Veridian Solutions, were crucial in broadening Nexon’s service offerings and market reach. As a result, Nexon’s workforce grew from 150 to over 600 employees, and its client base expanded to more than 1,000 mid-market and enterprise customers across Australia.
A Strategic Vision for the Future
Frank Heckes, a partner in the EQT Private Capital Asia advisory team, praised Nexon’s leadership for their strategic vision and industry expertise. He expressed confidence that Nexon is well-positioned for continued success under its new ownership. Similarly, Barry Assaf highlighted the value of EQT’s partnership, which helped the company execute its growth strategy, scale its team, and significantly expand its capabilities in cloud, security, and digital solutions. Assaf stated that he looks forward to building on this momentum with Adamantem Capital.
Adamantem Capital’s Growing Portfolio
Adamantem Capital, founded in 2016, is a prominent player in the Australian investment landscape with over $2 billion in funds under management. The firm’s portfolio includes investments in a diverse range of sectors, from consumer products and medical services to IT services and community health. The acquisition of Nexon is its latest strategic move. In March, the company formally moved to acquire wealth management group Mason Stevens in a deal reportedly worth $200 million. The firm also recently secured control of patent law firm owner QANTM Intellectual Property in a $254 million ASX takeover. While Adamantem has a strong track record of successful acquisitions, it has also demonstrated a willingness to walk away from deals that do not meet its terms, as seen in its decision to abandon a $143 million takeover offer for zero-waste recycler Close the Loop.
The Significance of Australian Ownership
The acquisition of Nexon by Adamantem Capital is more than just a business transaction; it represents a return to local ownership for a key player in Australia’s digital services industry. This move is significant as it keeps control and strategic decision-making within the Australian market. For Nexon’s employees and customers, this may signal a continued focus on local market needs and a commitment to growing the business from within the country. Adamantem’s established presence and success in the Australian market suggest a strong future for Nexon, as it can now leverage the new owner’s local expertise and network to further its growth trajectory. The deal marks a new and exciting chapter for Nexon Asia Pacific.
