Colocation and networking provider Nexion has acquired Perth-based telecommunications provider Blue Sky Telecom for $2 million in stock plus earn-out incentives.
Blue Sky is a national telco and network solutions provider with a focus on mine-site camps across Western Australia. Some of its offerings include an international Hosted Voice Platform; a Multiprotocol Label Switching (MPLS) network; internet via NBN, fibre, fixed wireless and 4G; a national satellite network; and managed services like Wi-Fi, SD-WAN and cybersecurity management.
The No. 14 placed company in the 2020 CRN Fast 50 said the deal is part of its ongoing expansion strategy, which involves acquiring local ICT service providers that bring relevant skills and expertise, while also fuelling growth.
The company added that the acquisition facilitates a seamless interconnection of all products and services from both Nexion and Blue Sky into one “easy to deploy” customer edge to hybrid cloud full stack service offering.
“We are extremely pleased to announce this acquisition. Blue Sky is a fast growing business with an outstanding product offering,” Nexion co-founder and chief executive Paul Glass said.
“As a result, Nexion will be a stronger combination of infrastructure and products that should yield material cross-sell opportunities and the possibility of lower costs. The business, much like Nexion Networks is underpinned by a focus on recurring revenue and long term contracts. This alignment is key to the Nexion group growth strategy as we focus on long term shareholder value in a recurring revenue focused group.”
“We are very pleased to be working with Blue Sky’s founder, Daniel Fairbairn and I look forward to working together with him going forward to deliver growth. Finally, it has been a key objective of the company to materially improve the proportion of recurring revenue in Nexion’s revenue mix and this acquisition is a huge step towards this goal.”
Speaking on the acquisition, Blue Sky founder Daniel Fairbairn said, “By bringing these two businesses together under the Nexion group, the company will be able to leverage and combine their respective in-depth expertise and ability to build commercial solutions that adds real value to our customers.”
“I am very committed to replicating Blue Sky’s historical success and creating an even stronger commercial proposition for our customers and generating strong returns for Nexion shareholders. The Nexion Networks team have a proven record on delivery and it’s great to
be a part of this group of executives.”