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Sydney-based Adamantem Capital is bringing digital IT service provider Nexon Asia Pacific back into Australian hands after securing a deal to acquire the business from Swedish private equity group EQT.
The deal brings to an end a six-year investment in Nexon by EQT, which has more than $475 billion in assets under management and has grown revenue for the Australian operation by more than 500 per cent since 2019.
The EQT Mid-Market Asia III fund has agreed to sell Nexon to Adamantem Capital, which counts Australian data and analytics consultancy firm Servian among its investments.
Financial details of the transaction have not been disclosed, but the deal remains subject to regulatory approvals.
Founded in 2000 by CEO Barry Assaf, Nexon is an award-winning digital and IT services provider that offers a broad suite of solutions to clients who require end-to-end capabilities and specialist expertise in security, cloud and digital solutions.
Since acquiring Nexon in July 2019, EQT says it has supported a comprehensive transformation led by Assaf who is understood to remain as Nexon’s CEO following the sale.
“Over the course of our partnership, we’ve been fortunate to work closely with the talented leadership team at Nexon, whose strategic vision and deep industry expertise have been critical to the company’s success,” says Frank Heckes, partner in the EQT Private Capital Asia advisory team.
“Together, we’ve built on Nexon’s strong foundations, driving innovation, expanding its service offering, and strengthening its market position.
“We are proud of what has been achieved and are confident that the company is well-positioned for continued success in its next chapter.”
Under EQT’s ownership, Nexon has grown both organically and through eight bolt-on acquisitions over the past six years, including Liveware Solutions, Veridian Solutions, Equate Technologies and Computer Systems Australia.
In that time, Nexon has expanded from 150 employees to a workforce of more than 600 serving more than 1,000 mid-market and enterprise customers in Australia.
“We’re incredibly proud of how far Nexon has come,” says Assaf.
“With EQT’s support, we’ve grown to become one of Australia’s leading IT services platforms, scaling our team, broadening our customer base and significantly expanding our capabilities across cloud, security and digital solutions.
“EQT has been a true partner in helping us execute our growth strategy, including acquisitions that have strengthened our service offering and market reach.”
Assaf sees Nexon building on this momentum under Adamantem Capital’s ownership.
Adamantem Capital, which was founded in 2016, has more than $2 billion in funds under management with investments in consumer products, medical, IT services and community health.
In March, the company formally moved to acquire wealth management group Mason Stevens with the deal, said to be worth $200 million, aimed at capitalising on Australia’s expanding “high net worth” sector.
Last year, the investment group planned a $143 million takeover offer for zero-waste recycler Close the Loop (ASX: CLG) but walked away from the deal after the parties were unable to reach agreement on terms for the deal.
Prior to that, Adamantem secured control of patent law firm owner QANTM Intellectual Property in an ASX takeover worth $254 million.
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