Australia's Nexion Group jumps on deal to buy two NZ tech firms

Nexion

25/07/2022 04:05

** Shares of cloud services provider Nexion Group  NNG.AX 
jump as much as 17.9% to A$0.099, hitting their highest since
May 6
    ** Nexion says it will buy New Zealand-based information
technology cos Aiscorp and Silicon Systems, tripling the size of
co to A$18.3 mln ($12.63 mln) pro-forma FY22 revenue
 urn:newsml:reuters.com:*:nFWN2Z40BC
    ** Stock posts its biggest intraday pct gain since June 16
    ** Co says combination of the two cos' expertise and local
knowledge sets a foundation capable of delivering rapid growth
and strong profits across the group
    ** Says acquisition is subject to conditions including
completion of due diligence, approvals and co raising at least
A$7.245 mln cash via debt or equity
    ** Stock down 50.6% YTD, as of last close
    
   ($1 = 1.4484 Australian dollars)

 (Reporting by Riya Sharma in Bengaluru)