EQT collects first-round bids for Nexon Asia Pacific

IT services provider Nexon generates about $25m to $30m of annual earnings before interest, tax, depreciation and amortisation.

Swedish private equity firm EQT is understood to have collected first-round bids for its IT services provider Nexon Asia Pacific, up for sale through Houlihan Lokey. EQT bought a majority stake in the business in 2019.

The understanding is that the buyout fund approached a wide group of parties for the sale.

Nexon generates about $25m to $30m of annual earnings before interest, tax, depreciation and amortisation. It is though to have attracted interest from a number of private equity firms.

EQT describes Nexon as a cloud and managed service provider that delivers solutions to support IT functions of clients across the commercial, public and not-for-profit sectors.

Co-founder and CEO Barry Assaf remains a shareholder for the business, held within EQT’s Mid Market Asia III fund.

When it was purchased, it had built strong customer relationships with the mid-market and government segments.

EQT said Nexon was expected to benefit from strong underlying secular trends, including increased share of IT outsourcing and growing cloud adoption.

The Australian managed IT services market is fragmented, creating an opportunity for Nexon to drive consolidation.

Since its initial investment, EQT has embarked on acquisitions, and could create an opportunity for a buyer to consolidate or enter Australia.