Exclusive Networks Announces a Major Step in Its Growth Strategy in APAC with NEXTGEN Group Acquisition

Regulatory News:

Exclusive Networks (Euronext Paris: EXN), a global leader in cybersecurity, announced the signature of a binding agreement for the acquisition of 100% of the share capital of NEXTGEN Group (“NEXTGEN”), a leading hyper-growth channel services company focused on cybersecurity, data resiliency and digital enterprise in Australia and New Zealand with presence across APAC.

Headquartered in Sydney, Australia, NEXTGEN was founded in 2011 and has 190 employees across APAC. In FY-23, ending June 30^th, 2023, NEXTGEN generated Gross Sales of AU$266m (€160 m), with expected double-digit growth for the years to come.

This operation fits perfectly with Exclusive Networks’ external growth strategy.

NEXTGEN presents a promising hyper growth vendor portfolio, coupled with a wide array of services. This value-enhancing transaction will make Exclusive Networks a clear go to market leader in Australia and New Zealand generating commercial and financial synergies thanks to the complementarity nature of the two companies.

The combination of NEXTGEN and Exclusive Networks will offer unique end-to-end value-added channel management services, supported by real-time data analytics and AI-backed insights, benefiting the entire APAC region and providing Exclusive Networks with the ability to roll-out digital channel services at a global scale.

NEXTGEN’s strong expertise in cloud migration assessment, digital marketing and lead generation solutions will expand Exclusive Networks’ value proposition by leveraging NEXTGEN's in-house state-of-the-art platforms and developed initiatives with hyperscalers, laying the foundations for the next phase of growth.

Following the acquisition, Exclusive Networks’ presence in Australia and New Zealand will be more than doubled and, based on FY pro-forma figures as of Dec 31, 2023, the combined entity would have represented gross sales of around €615m in APAC, a region with attractive growth prospects and a total addressable market estimated at $10 bn in 2023¹.

The closing of the transaction is subject to customary conditions precedent and is expected to be finalized during the second quarter of 2024.

Jesper Trolle, CEO of Exclusive Networks, commented:

“This acquisition is a major step forward in our growth strategy in APAC, it significantly strengthens our business and allows us to expand and develop further our value proposition. We are very pleased to welcome John Walters and NEXTGEN’s highly talented teams to the Group and look forward to working with them. Together, we will aim to create a regional leader and break new ground. The combination of resources and experience will help accelerate our growth and competitiveness in this very dynamic market and beyond.”