Nexon Asia Pacific, a leading IT services company, is currently at the center of a high-stakes auction. EQT Partners is selling the $30 million-a-year business, with Pacific Equity Partners (PEP) and Adamantem Capital emerging as the final contenders. The sale process, managed by investment bank Houlihan Lokey, is expected to conclude in the coming weeks with both private equity firms preparing to submit binding offers.
PEP’s managing director, Rohan Wolfers, is at the forefront of their bid. The Sydney-based firm has partnered with Trident Debt Capital Advisors for financing and due diligence. This marks a strategic move for PEP, which recently closed its latest buyout fund despite challenging fundraising conditions.
Adamantem’s Strategic Bid
On the other side, Adamantem Capital, led by Anthony Kerwick and Rob Koczkar, brings valuable experience to the table. The firm previously invested in the data analytics consultancy Servian, which it sold to US IT services provider Cognizant. That deal reportedly yielded a return of nearly three times the original investment, demonstrating Adamantem’s capability in managing and exiting tech investments.
While a trade player reportedly expressed initial interest, it remains uncertain if they progressed to the next bidding stage. Notably, Telstra, an ASX-listed company, has opted out of the current process after considering the acquisition two years ago through its professional services division, Telstra Purple.
Nexon’s Growth Under EQT
EQT’s Mid-Market Asia III fund acquired a majority stake in Nexon in July 2019, with a vision to expand its regional presence. Nexon provides a wide range of services, including information, communication, digital transformation, cloud implementation, and cybersecurity to over 1,000 clients. Under EQT’s ownership, Nexon executed strategic acquisitions such as Computer Systems Australia, Equate Technologies, Liveware Solutions, and Veridian Solution.
The investment was initially managed by EQT’s Singapore team, though now Frank Heckes, a Sydney-based partner, is on Nexon’s board. The sale represents a significant opportunity for the winning bidder to capitalize on Nexon’s established market position and potential for further growth in the IT services sector. As the auction progresses, all eyes remain on PEP and Adamantem to see who will ultimately secure the prized asset.
