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Good evening,

Telstra buying cloud services business Versent, Riverside nabbing Wollongong’s Virtual IT Group and BGH Capital acquiring Waterman Capital’s IT business Fusion5.

Australia’s IT services sector has been awash with deals over the past year. Now, Street Talk understands that investment bankers have added EQT’s Nexon Asia Pacific to their pipelines.

They know EQT’s Mid Market Asia fund has held a majority stake in the IT services outfit since July 2019, meaning the Swedish private equity firm’s dealmakers would be thinking about an exit. And recent sales have proven there’s no shortage of suitors for IT businesses.

To be clear, EQT is yet to mail out a request for a proposal seeking a sell-side adviser, and a sale process for Nexon might not launch for months.

But bankers and potential bidders know EQT’s dealmakers won’t pull the trigger on an auction until they are certain there are at least a couple of motivated bidders chasing Nexon.

For now, the EQT camp seems to be keeping a ear out for anyone who can bring them ideas around Nexon, while refraining from launching a full-blown sale.

An EQT representative said the firm had “not launched a sale process”, adding: “Our focus remains on executing our value creation strategy with the company.”

Read the full story tomorrow and more on the Street Talk page.

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