Australia's NEXION Group gains on deal to buy Blue Sky Telecom Pty

Nexion

08/04/2021 03:34

** Cloud services provider NEXION Group Ltd  NNG.AX  rises
as much as 6.8% to A$0.235
    ** Co to buy Blue Sky Telecom Pty Ltd in an all-stock deal
for A$2 mln ($1.52 mln) and earn-outs  urn:newsml:reuters.com:*:nASN0011PE
    ** Blue Sky is a telecommunications & network solution
provider headquartered in Perth
    ** Says deal to substantially increase NEXION's recurring
revenue base as a percentage of total revenue; sees strong
potential for cost synergies
    ** NEXION expects to complete the transaction during Q4 FY21
    ** As of last close, NNG had fallen 12% since it started
trading on Feb 18
       


($1 = 1.3148 Australian dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))