Nexion to buy NZ tech companies

Information and communications technology service provider Nexion Group has entered into an agreement to acquire New Zealand information technology companies Aiscorp and Silicon Systems.

Nexion Group announced on the ASX today that the acquisitions of Aiscorp and Silicon completed the next step of revenue growth in the Pacific region.

The purchase is subject to conditions including Nexion obtaining its board, shareholder, regulator and third-party approvals, and the group raising at least $7.425 million cash via debt and/or equity.

Nexion’s ASX announcement said settlement would occur when all conditions satisfied and if the conditions remained unsatisfied after November 30, then either party may terminate the agreement.

If the deal occurs, Nexion will pay NZD $8.15 million, roughly converted to AUD $7.35 million, consideration for Aiscorp and NZD $6.15 million, or about AUD $5.55 million, consideration for Silicon.

Nexion chief executive Paul Glass said Aiscorp and Silicon were part of the group’s journey to become a global hybrid cloud operator.

“Aiscorp and Silicon are outstanding businesses with long histories of delivering services in the Pacific region and will continue to operate as independent, complimentary members of NEXION Group,” he said.

“NEXION has a vision to deliver services in eight global regions and the completion of these acquisitions sets the foundation for our second region called NEXION Pacific that spans the East coast of Australia to the West coast of North America.

“Our next step is Canada so a base in Wellington makes acquisitions and growth into that time-zone much more efficient.”