NEXION Reports $2.5M From Data Centre Sale, Relaunches AI Subsidiary FuseAI
NEXION Group Ltd has exited a major transaction, sold its Perth data centre, and relaunched its AI-focused subsidiary, positioning itself for renewed growth and ASX reinstatement.
- Discontinued 2024 proposed transaction to refocus on core business
- Sold 2MW Perth data centre, securing $2.5M in cash and vendor loan
- Relaunched FuseAI subsidiary targeting AI business intelligence for heavy industries
- Networks business reports strong growth and new contracts including DCA data centre management
- Preparing for ASX reinstatement amid strategic realignment
Strategic Pivot Away from Proposed Transaction
In a decisive move, NEXION Group Ltd has formally abandoned the material transaction announced in 2024, a shift that allows the company to concentrate on its core competencies and emerging growth opportunities. This strategic realignment reflects a broader industry trend where technology firms streamline operations to sharpen focus on scalable, high-margin segments.
Data Centre Divestment Strengthens Financial Position
Capitalising on market conditions, NEXION successfully divested its 2MW data centre in Perth, Western Australia. The sale generated a $2.2 million vendor loan alongside $300,000 in immediate cash proceeds, bolstering the company’s liquidity and balance sheet. This transaction not only provides financial flexibility but also signals a shift away from capital-intensive infrastructure towards software and services.
FuseAI Relaunch Targets Heavy Industry AI Solutions
Reactivating its subsidiary Fuse Forward Australia Pty Ltd under the new brand FuseAI, NEXION is positioning itself at the forefront of AI-enabled business intelligence. The focus is on delivering tailored AI solutions to heavy industries such as mining, utilities, and oil & gas; sectors ripe for digital transformation. This move leverages NEXION’s hybrid-cloud expertise and aligns with increasing demand for data-driven operational efficiency.
Robust Performance in Networks Business
The company’s networks division continues to deliver strong results, marked by revenue growth and operating profits. Noteworthy achievements include securing the management contract for the DCA data centre in Canning Vale and expanding satellite-based enterprise network backup solutions, particularly leveraging Starlink technology for remote mining operations. These wins reinforce NEXION’s reputation as a trusted provider of secure, high-performance connectivity and managed services.
Path to ASX Reinstatement and Future Outlook
Buoyed by operational progress and a clearer strategic focus, NEXION’s board is actively preparing for the company’s reinstatement to ASX quotation. The integration of AI-driven software products with its traditional network and cloud services represents a compelling growth narrative. However, the company’s modest cash reserves and outstanding convertible notes highlight the importance of continued execution and financial discipline.
Bottom Line?
NEXION’s strategic reset and operational momentum set the stage for a pivotal next chapter as it eyes ASX reinstatement and AI-driven growth.
Questions in the middle?
- How quickly will FuseAI contribute meaningful revenue and profitability?
- What are the detailed plans and timing for repaying the outstanding convertible notes?
- How will NEXION sustain cash flow and funding beyond the data centre sale proceeds?