Nexora plots acquisition spree following private equity buyout

CEO Clive Fitzharris speaks to CRN and says M&A is “100 per cent” back on the table following One Equity Partners’ agreement to acquire Nexora

DCC Energy has agreed to sell its technology division, Nexora, to private equity firm One Equity Partners, for a total value of $725m (£548m) on a cash and debt-free basis.

The sale is expected to complete on or after 1 March 2027.

On the day of the announcement, CRN sat down with Clive Fitzharris, CEO of Nexora, to discuss Nexora’s strategy, new ownership and what it means for the business.

The sales process, and finding the right buyer

DCC’s intention to sell Nexora was announced almost two years ago.

Fitzharris notes that the time it took allowed the business to reflect on what it wanted from the process, from maximising the outcome for DCC shareholders while finding the right owner to help Nexora continue to execute its strategy and continue to grow the business.

“From the very first meeting with One Equity Partners, they were right up there as a really strong fit for the business from a few perspectives.”

The synergy was strong between Nexora and One Equity Partners, from sector focus and geography to a strong appetite for mergers and acquisitions.

While One Equity Partners came out successful, the sales process was very competitive, Fitzharris says.

“It was public that DCC were looking for a new owner for the business … I met a lot of parties, but I think the ones that fitted became quite clear early on.

“We ran a very competitive process throughout.”

Fitzharris notes that DCC has been a “very supportive owner of this business over a long number of years and have built it to where it is today”.

However, through this move, Nexora gains additional capabilities.

“The first benefit of this move and having a dedicated owner with One Equity is focus.

“We can prioritise our own capital, and our own initiatives with the support of a very strong investment partner.”

The second benefit is joining a broader family of businesses.

“One Equity have acquired over 500 businesses, and they have 60 in their portfolio at the moment.

“Those 60 businesses are in our ecosystem.

“We're going to get a lot of benefit being part of that community and having the expertise, as well as the capital, of One Equity to make the right choices and to move quickly on them.”

Nexora’s strategy going forward

Although Nexora is going through a period of change with a new owner, its strategy will remain largely the same.

“There is consistency and continuity, rather than change in the strategy,” Fitzharris notes.

“We have come through a period of considerable change as we've repositioned the business around a vision to be the global leader in professional technology value-added distribution, we've divested businesses that didn't fit that profile, largely in the IT and the consumer electronic space in Europe, and One Equity are coming in to support our ambition to continue to expand in that pro tech space.”

The strategy will remain consistent, and One Equity Capital will provide dedicated support and capital, which aims to accelerate the strategy.

In a previous interview with CRN earlier this year, Fitzharris divulged that while M&A appetite was still strong, it needed to take a backseat while the sales process was ongoing.

Now the sales process is complete, M&A is “100 per cent” back on the table.

“We’re very clear about the priority opportunities that we have in front of us, and that’s part of why One Equity are so excited, and they share that vision.”

Nexora's M&A play

With a strong appetite for M&A, Nexora is planning on getting started very quickly.

Nexora’s strategy is focused on specialist value-added distribution in the pro tech space, covering AV, audio (both professional and consumer focused), pro lighting, custom compute, as well as others, and its Nordic business has a very strong position in pro gaming components.

Nexora is looking to acquire “businesses in that professional technology space that are providing or are critical to digitalising physical spaces for better experiences and more enhanced experiences for users.”

The business already has its eye on organisations within the target areas.

“I'm very clear in terms of the businesses that are the highest priorities for us, and have regular conversations with them.

“There's a number of those waiting in the wings for this announcement, and we'll start those conversations with greater purpose over the coming months.”

What does the transaction mean for Nexora’s partner ecosystem?

“I really think it’s about us going faster,” Fitzharris comments.

Nexora has already been investing in its people, capabilities, and innovation in order to generate demand and grow the number of customers that it is serving.

This play, in turn, has helped produce gains for its vendor partners as well.

“With One Equity Partners’ support and investment, we can go faster on that journey and invest further into our business and into those capabilities to generate demand.”

Strategic priorities and future success

The top priority going forward is continued growth in the pro tech space, and now the business will have the capabilities to go faster.

“We’re happy with where it is at the moment.

“It is really delivering financially, so we have had an excellent year last year, and this year the momentum has increased.

“Some areas are difficult markets, other markets are quite hot, but overall, good mid-single digit top line growth and an extremely strong double-digit profit growth year to date.

“I don't see that changing in the near term, so [we want to] continue to capitalise on that, and continue with our projects as we're digitalising the business and investing in our people for further organic growth.”

The second priority, as already stressed by Fitzharris, is M&A.

In the longer term, the goal is to become the global leader in the professional technology specialism, with heightened focus on pro AV and pro audio.

When it comes to financial delivery, Fitzharris sees Nexora’s “revenue growth being mid-single to even double-digit growth over the next five years, with strong profitability.

“We will continue to reinvest into our capabilities, the digital tools, the demand generation capabilities that we have, and into our people.

“We're very focused on being the expert that's selling to experts, and making sure that we continue to have the best people in the industry.”

The continued reinvestment aims to broaden Nexora’s reach, both geographically and in the verticals it serves.

North America continues to be a strong market for the business, and Fitzharris notes that there are further opportunities to grow in the market organically, as well as with mid-size acquisitions.

The story is similar in Europe, with success down to portfolio work the business has been doing in the region, with further scope for expansion via M&A.