Mobile Virtual Network Operator (MVNO), XOX Bhd, through its wholly-owned subsidiary, XOX (Hong Kong) Limited, announced today it has acquired through delivery of transfer, 16.37% of Nexion Technological Limited, worth RM23 million.
Nexion, listed on the Hong Kong Stock Exchange GEM Board, is a well-established information and communication technology solution provider with headquarters in Singapore, focusing on cyber infrastructure and cyber security solutions in Southeast Asia through Software as a Service (SaaS) model, XOX said in a statement.
According to Ng Kok Heng, Group Chief Executive Officer of XOX Bhd, the acquisition is in line with the Group’s direction to go into microfinancing, blockchain technology and content-based assets.
In the current digital environment, with burgeoning consumer participation on the internet, cybersecurity is an often-overlooked factor in building products and services for the masses.
“Cyber security is an essential component to achieve the Group’s direction and goals. A strategic stake in Nexion will benefit XOX in increasing XOX’s capability to secure network, addressing cyber security challenges. It would also potentially allowing us to have pricing advantage over other competitor products. This generates new revenue stream by reselling Nexion products to XOX’s customers, and furthermore, Nexion allows us to spearhead the international growth of XOX,” says Ng.
The cash consideration of RM23million for the acquisition was on the prevailing market price of Nexion at the time of the purchased and was funded via internally generated funds.