Global cybersecurity solutions provider Exclusive Networks (Euronext Paris: EXN), a company headquartered in France, has acquired NEXTGEN Group, an APAC-based channel services firm with a focus on cybersecurity, data resiliency, and digital enterprise in Australia and New Zealand. Financial terms of this acquisition were not disclosed.
NEXTGEN, an Australian company with 190 workers around APAC, was established in 2011 and is headquartered in Sydney. With double-digit growth anticipated in the upcoming years, NEXTGEN recorded gross sales of AU$266 million (€160 million) in FY-23, which concluded on June 30th, 2023.
With a broad range of services, NEXTGEN offers a ‘hyper growth’ vendor portfolio that would seem promising. According to Extreme Networks, their two businesses complement each other. The company anticipates that this value-adding deal will establish Exclusive Networks as an industry leader in Australia and New Zealand, creating financial and commercial synergies.
With the support of real-time data analytics and AI-backed insights, the combination of NEXTGEN and Exclusive Networks would offer unique end-to-end value-added channel management services aiming to benefit the whole APAC region and enable Exclusive Networks to launch digital channel services on a global scale.
“This acquisition greatly enhances our company and enables us to further develop and expand our value proposition, which is a key step forward in our growth strategy in APAC,” said Jesper Trolle, CEO at Exclusive Networks. “We are excited to collaborate with John Walters and the incredibly skilled people at NEXTGEN, and we are extremely happy to have them join the Group. We will work together to establish a new standard and produce a regional leader. Our growth and competitiveness will be accelerated in this extremely dynamic sector and beyond thanks to the combination of resources and experience.”
Exclusive Networks’ Footprint in Australia and New Zealand
“This acquisition greatly enhances our company and enables us to further develop and expand our cybersecurity value proposition, which is a key step forward in our growth strategy in APAC,” said Jesper Trolle, CEO at Exclusive Networks.By utilizing NEXTGEN's in-house platforms and developed initiatives with hyperscalers, Exclusive Networks would be able to offer a more comprehensive value proposition thanks to NEXTGEN's strong expertise in cloud migration assessment, digital marketing, and lead generation solutions. This would set the stage for the company's next phase of growth.
The acquisition would result in a more than twofold increase in Exclusive Networks' footprint in Australia and New Zealand. Based on FY pro forma figures, as of December 31, 2023, gross sales for the combined entity would have been approximately €615 million in APAC, a region with promising growth prospects and a total addressable market estimated at $10 billion in 2023.
It is anticipated that the transaction will close in the second quarter of 2024, subject to standard conditions precedent.
“We have to locate the ideal worldwide partner that fits with our culture and contributes the proper amount of investment to our model in order to capitalize on the next exciting phase of NEXTGEN Group's growth. Under Jesper's leadership, Exclusive Networks closely reflects our common goals and ideals, which include an enthusiasm for innovation and an entrepreneurial attitude,” said John Walters, Founder and CEO of NEXTGEN Group.
“We enter this new phase with Exclusive Networks with tremendous confidence and excitement, having spent the last 13 years growing the company from the ground up. With this move, we are embarking on an exciting new chapter in which the resources and experience of a leading global cybersecurity company will help us expand even faster.”
