Nexion Group’s $4.1M Networks Sale Fuels AI and Data Centre Pivot
Nexion Group has completed the sale of its networks business for $4.1 million, marking a strategic pivot towards data centre operations and its AI-driven FuseAI software platform. The company is restructuring and preparing to resume ASX trading amid evolving revenue streams.
- Sale of networks business to Pier DC for $4.1 million completed
- Focus shifts to data centre operations and FuseAI predictive analytics software
- Recurring revenue post-sale includes vendor finance repayments and maintenance contracts totaling $42,567 monthly
- Convertible notes of $1.75 million remain outstanding, maturing in May 2026 with 10% interest
- Company plans to seek ASX approval to resume share trading in Q2
Strategic Divestment Completed
In a significant move, Nexion Group Ltd (ASX – NNG) has finalized the sale of its networks business, including Nexion Networks Pty Ltd and Blue-Sky Telecom Pty Ltd, to Pier DC Pty Ltd for $4.1 million. This transaction, approved by shareholders at an extraordinary general meeting on October 29, 2025, marks a clear strategic shift away from traditional network services.
The sale is expected to close around October 31, 2025, with operational teams transitioning to the new owner. This divestment allows Nexion to concentrate resources and management attention on its remaining core businesses.
Refocusing on Data Centres and AI Software
Post-sale, Nexion’s business focus will pivot to its data centre operations and the FuseAI platform, an AI-enabled digital twin and predictive analytics software designed to optimise infrastructure performance. This repositioning aligns with broader industry trends emphasizing AI-driven asset management and digital transformation.
The company anticipates recurring revenue streams from vendor finance repayments totaling nearly $2.88 million principal at 9% interest, alongside a data centre maintenance contract generating approximately $42,567 monthly. These steady income sources provide a foundation as Nexion rebuilds its operational team in Perth to drive growth in technical infrastructure maintenance and software sales.
Financial Overview and Capital Structure
The quarterly cash flow report reveals operating cash outflows of $350,000, partially offset by $200,000 in cash inflows from investing activities related to asset sales, and financing outflows of $100,000, ending the quarter with $37,000 in cash. Payments to related parties, including director fees and consulting, amounted to $76,000.
Notably, Nexion continues to carry $1.75 million in unsecured convertible notes due May 2026, bearing 10% interest. While conversion into equity remains a possibility subject to shareholder and ASX approvals, the company currently expects to repay these notes in cash.
Looking Ahead – ASX Trading and Growth Prospects
With the networks business sale behind it, Nexion plans to seek ASX approval to resume trading of its shares in the second quarter. This step is critical for restoring liquidity and investor confidence as the company pursues its new strategic direction.
Investors will be watching closely how Nexion leverages its AI software capabilities and data centre assets to generate sustainable revenue growth, especially given the modest cash reserves and the need to manage convertible note obligations.
Bottom Line?
Nexion’s transformation hinges on successful execution of its AI and data centre strategy amid tight cash flow and upcoming financing milestones.
Questions in the middle?
- How quickly can Nexion grow recurring revenue from FuseAI and data centre contracts?
- Will the company repay or convert its $1.75 million convertible notes by May 2026?
- What is the timeline and likelihood for ASX approval to resume share trading?
