NEXION Group Ltd (ASX: NNG) has announced it has signed a non-binding Letter of Intent (LOI) to sell its data centre subsidiary, Nexion W1 DC Pty Ltd, to Carrier Connect Data Solutions Inc., a Canadian company listed on the TSX Venture Exchange. Carrier Connect specializes in providing co-location and data centre solutions. The proposed sale consideration is AUD $2,500,000, structured with an initial payment of AUD $200,000 at closing, followed by AUD $100,000 six months later. The remaining balance will be structured as a vendor take-back note with a 9% interest rate, amortized over 25 years, with a 5-year term, with the first payment due three months post-closing.
Under the terms of the LOI, Nexion will continue to invoice customers and handle data centre operations and maintenance until the payment is fully made. Carrier has an exclusive due diligence period until 15 May 2025, potentially extendable by mutual agreement, and exclusivity until 30 May 2025, to finalize a definitive agreement.
The sale’s proceeds will be allocated towards debt repayment, administrative expenses, and enhancing working capital. NEXION has confirmed that the transaction will not result in any changes to its board or senior management. The company anticipates that the transaction will be net cash positive upon completion. NEXION will provide updates to the market regarding significant developments related to the sale. NEXION Group Ltd integrates software, compute, storage, network, and cybersecurity solutions and owns a 2MW data centre in Perth, Western Australia.
