Exclusive Networks acquires NEXTGEN Group to bolster APAC presence

Exclusive Networks, a global distributor, has recently announced a major milestone in its growth strategy within the Asia-Pacific region (APAC). The firm will fully acquire NEXTGEN Group, a fellow IT solutions distributor, strengthening its presence in Australia, New Zealand, and across APAC.

NEXTGEN Group, headquartered in Sydney, Australia, was established in 2011 and presently employs 190 people across APAC. In the financial year ending 30 June 2023, NEXTGEN recorded a gross sale of AU$266m (£160m). The acquisition is predicted to engender double-digit growth in the upcoming years, perfectly fitting into Exclusive Network's external growth strategy.

The acquisition promises commercial and financial synergies by leveraging NEXTGEN's vendor portfolio with wide arrays of services. The operation is also expected to position Exclusive Networks as a leading player in the market in Australia and New Zealand. The complementary nature of both companies will enhance the value of the transaction.

Subsequent to the fusion of Exclusive Networks and NEXTGEN, end-to-end value-added channel management services will be delivered, underpinned by instantaneous data analytics and AI-supported insights. This exclusive amalgamation will benefit the entire APAC region and also empower Exclusive Networks to extend its digital channel services on a global scale.

NEXTGEN's advanced expertise in cloud migration assessment, digital marketing, and lead generation solutions will augment Exclusive Networks' value proposition. NEXTGEN's solid in-house platforms, along with developed initiatives with hyperscalers, are expected to pave the way for the next phase of growth.

Following the acquisition, Exclusive Networks' presence in Australia and New Zealand would enlarge massively. The combined entity would have gross sales of around £615m in APAC, engaging a vibrant market with enticing expansion prospects and a total addressable market size estimated at $10 bn in 2023.

The transaction is expected to close in the second quarter of 2024, in accordance with customary conditions precedent.

Jesper Trolle, CEO of Exclusive Networks, heralded the acquisition as a significant step in expanding their growth in APAC. He stated, "It significantly strengthens our business and allows us to expand and develop further our value proposition." Trolle also expressed his pleasure in welcoming John Walters, along with NEXTGEN's highly skilled teams, to the group and their combined endeavour to create a regional leader.

John Walters, Founder and CEO of NEXTGEN Group, echoed Trolle's sentiment. He stated that the next phase of NEXTGEN Group's growth required a global partner that enhances its model with appropriate investments and aligns with its culture. Walters assured, "After 13 years of building a business from start-up, it is with great confidence and enthusiasm that we begin this new phase with Exclusive Networks."