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.