Exclusive Networks sets expansion plans in APAC with latest acquisition

The French distie is acquiring Australian-HQ distributor NEXTGEN Group

French distributor, Exclusive Networks is acquiring Australian distributor NEXTGEN Group to expand its presence across APAC.

Headquartered in Sydney, NEXTGEN was founded in 2011 and has 190 employees across APAC.

In FY23, NEXTGEN generated gross sales of €160m (£136.81m), with expected double-digit growth for the years to come.

NEXTGEN presents a hyper growth vendor portfolio, coupled with a wide array of services, Exclusive said, and it hopes will make 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 two disties are hoping to offer 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.

Following the acquisition, Exclusive Networks' presence in Australia and New Zealand will more than double.

Based on FY pro-forma figures, the combined entity would have represented gross sales of around €615m in APAC, a region with growth prospects and a total addressable market estimated at $10bn in 2023.

The closing of the transaction is expected to be finalised during the second quarter of 2024.

Jesper Trolle, CEO of Exclusive Networks, said: "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.

"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."

John Walters, founder and CEO of NEXTGEN Group added: "To capture the next phase of NEXTGEN Group's exciting growth, we had to find the right global partner that brings the appropriate investment into our model and aligns with our culture.

"Exclusive Networks, led by Jesper, aligns strongly with our shared ambitions and values, including a passion for innovation and an entrepreneurial spirit.

"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.

"This step marks the start of an exciting new chapter in which our growth will be accelerated by the resources and expertise of a global cybersecurity leader."

Exclusive back to private ownership?

Earlier this month, news broke that Exclusive Networks was believed to be returning to private ownership following rumours its largest shareholder is contemplating taking the distributor off the Euronext Paris.

A report from Reuters, citing people familiar with the matter said private equity firm Permira is considering getting together with investors, including private equity funds.

The pivot back to private reportedly follows expressions of interest in jointly bidding for the outstanding shares of the Paris-listed company, which has a market value of €1.65bn (£1.4bn).

Shares in the French cybersecurity distributor reportedly jumped following the Reuters report.

Exclusive Networks declined to comment on market rumours.