The competition intensifies for the sale of Nexon Asia Pacific, an IT services company owned by EQT Partners, as two prominent private equity firms, Pacific Equity Partners (PEP) and Adamantem Capital, advance to the final bidding stage. The sale, managed by investment bank Houlihan Lokey, is expected to see binding offers submitted in the coming weeks.
PEP’s Strategic Move
Leading the charge for PEP is Managing Director Rohan Wolfers. With expertise from Trident Debt Capital Advisors enlisted for financing and due diligence, PEP is navigating a relatively new sector. This move follows the successful close of their latest buyout fund earlier this year, demonstrating resilience in a challenging fundraising environment.
PEP’s entry into the IT services sector is marked by its strategic approach, leveraging external expertise to ensure a comprehensive evaluation of Nexon. This acquisition could potentially broaden PEP’s portfolio and strengthen its foothold in the industry.
Adamantem’s Experienced Approach
Anthony Kerwick and Rob Koczkar spearhead the bid from Adamantem Capital, drawing on their experience from a previous investment in Servian, a local data analytics consultancy. Adamantem acquired a 50% stake in Servian in July 2018 and later sold it to US-based Cognizant, achieving a return of nearly three times their initial investment. This background provides them with valuable insights into the IT services landscape.
Their experience with Servian highlights Adamantem’s ability to navigate the complexities of the IT sector and deliver substantial returns, making them formidable contenders in the current Nexon sale process.
Background and Industry Context
EQT Partners acquired a majority stake in Nexon through its Mid-Market Asia III fund in July 2019, with ambitions to accelerate growth and regional expansion. Nexon, renowned for its information, communication, and technology services, also offers digital transformation, cloud implementation, and cybersecurity solutions to over 1,000 clients.
While a trade player reportedly showed interest, their progress to the second stage remains uncertain. Notably, Telstra, through its professional services division Telstra Purple, previously considered the acquisition but opted out this time. EQT’s initial investment was overseen by its Singapore team, with Frank Heckes from Sydney now on Nexon’s board, highlighting the strategic oversight in expanding Nexon’s capabilities.
This sale not only marks a significant transaction in the IT services sector but also showcases the strategic maneuvering of leading private equity firms in Australia and New Zealand. As the auction progresses, industry observers keenly await the outcome of this high-stakes competition.
