Swedish investor EQT buys majority in Australian cloud services firm Nexon

Swedish investment firm EQT Partners has acquired majority stake in Australian cloud and managed service provider Nexon Asia Pacific out of its $800-million third Asia-focused mid-market fund.

Financial details of the deal were not disclosed.

The IT services company is looking to enhance its offering, grow its client portfolio, continue accretive acquisitions and strengthen the scalability of the platform, EQT said in a statement on Wednesday.

Nexon provides IT solutions to clients across commercial, public and not-for-profit sectors since 2000. It provides secure networks, unified communications, cloud services, managed security, business solutions and digital workspace.

The company, which has about 400 customers, has pursued a steady expansion strategy with several acquisitions since inception. Nexon is considered to be a platform to drive consolidation in a fragmented market.

EQT’s experience in the TMT and services sectors will support Nexon’s management team and employees in its next phase of growth and transformation, according to Tak Wai Chung, Partner at EQT Partners and Investment Advisor to EQT Mid Market Asia.

The Mid Market Asia III, a vehicle from EQT that closed in 2017, has made 10 investments till now. In April this year, it invested in Singapore-based healthcare benefits administrator MHC Asia Holdings through the third fund.

Late last year, it bought a 40 per cent stake in Shanghai Artwall Environmental Technology Co Ltd (Artwall), a leading wallpaper designer, manufacturer, and retailer in China.

EQT had invested in the company alongside Red Start Macalline, the largest national operator of home furnishing malls in China. The same year, it also acquired a 40 per cent stake in China Shine, a China-focused facility management service provider, for an undisclosed amount.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.