NEXION Group - COO, Kevin Read (left) and CEO, Paul Glass
COO, Kevin Read (left) and CEO, Paul Glass
Source: iTWire
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  • Nexion Group (NNG) has entered into an agreement to acquire all the issued share capital of Blue Sky Telecom
  • The acquisition comes with an upfront consideration of 10 million ordinary shares in Nexion and a deferred consideration over four tranches
  • According to Nexion, the agreement will expand the demand for its core services, while reducing the delivery cost of Blue Sky’s products
  • The acquisition is conditional on the company obtaining all necessary shareholder and regulatory approvals and is expected to be finalised in Q4 FY21
  • Nexion shares are up 2.27 per cent, trading at 22.5 cents

Nexion Group (NNG) has entered into an agreement to acquire all the issued share capital of Blue Sky Telecom.

Blue Sky is a national telecommunications and network solution provider, offering industry leading communication solutions to local and national enterprise customers.  

The acquisition comes with an upfront consideration of 10 million ordinary shares in Nexion and a deferred consideration over four tranches.

“The terms of the acquisition have been designed to strongly align the vendor with Nexion’s ongoing success and should the terms of performance milestones be met all shareholders can be expected to benefit strongly in coming years as Nexion’s revenue will have grown very significantly,” said Nexion Co-Founder and Group CEO Paul Glass.

The acquisition is conditional on the company obtaining all necessary shareholder and regulatory approvals.

Blue Sky has over 400 active clients across its product lines and has seen its revenue grow by 20 per cent to $2.4 million in the 2020 financial year, with growth expected to accelerate in 2021.    

The company’s revenue was at $2.9 million as at the end of March 2021, with the increase attributed to Blue Sky’s new Enterprise and Satellite divisions.

Nexion says Blue Sky’s product solutions compliment various segments of the Nexion network’s existing activities, including offering ICT solutions and using a combination of telecommunications, networking skills and data to provide communication solutions to customers.  

The combination of the two businesses is complementary by expanding demand for Nexion’s core services and reducing the delivery cost of Blue Sky’s products.

Blue Sky will be a key route for customers to access Nexion network’s global Hybrid Cloud offering, by seamlessly interconnecting all of Blue Sky’s “Edge” products and services into one hybrid cloud enabled full stack offering.

“We are extremely pleased to announce this acquisition. Blue Sky is a fast growing business with an outstanding product offering,” said Paul Glass.

“As a result, Nexion will be a stronger combination of infrastructure and products that should yield material cross-sell opportunities and the possibility of lower costs”.

Nexion expects to complete the transaction during Q4 FY21, subject to shareholder approval.

Nexion shares are up 2.27 per cent, trading at 22.5 cents at 11:25 am AEST.

NNG by the numbers
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