Press release
October 4, 2023
Gothenburg, Sweden
Hexatronic Group acquires USNet and strengthens its position in the US market within Data Centers
Hexatronic Group AB (publ) (“Hexatronic”) has acquired USNet, a US-based company that offers installation, project management, decommissioning, and relocation services nationwide for large-scale data center customers. The acquisition strengthens Hexatronic’s US data center position further through broader service offerings and with the possibility to provide cross-selling opportunities to both national and international clients together with Data Center Systems, a current company within Hexatronic Group. USNet today has 26 employees and an annual revenue of approximately 10 MUSD.
Transaction rationale
The US is Hexatronic’s largest market and one of the company’s strategic growth markets. The acquisition of USNet allows for additional diversification of Hexatronic’s business and increased opportunities within the growing market for data centers. Following the completion of the acquisition, Hexatronic’s data center business will increase to around 6-7 percent of annual group sales, on a proforma basis.
Comments from Hexatronic CEO
“We are thrilled to announce the acquisition of USNet, a move that underscores our commitment to expanding our foothold in the dynamic US data center market. This strategic acquisition aligns perfectly with our vision to enhance our system and service offerings, allowing us to deliver even greater value to our clients. The acquisition will also facilitate growth in new segments, allowing for further diversification, and enabling us to leverage USNet’s nationwide coverage to capture cross-selling opportunities. Looking ahead, I see promising opportunities for further growth in the data center sector, both through organic expansion and future acquisitions,” says Henrik Larsson Lyon, CEO of Hexatronic Group.
Comments from USNet CEO
“I am tremendously excited about the potential that this strategic partnership between USNet and Hexatronic’s subsidiary Data Center Systems holds. It's the culmination of long-term planning and a vision to create a business that not only enhances our current service offerings but also addresses the specific needs of the dynamic data center market.
We are entering a new chapter in our journey, and I have no doubt that this partnership will not only meet but exceed the expectations of our clients and partners. The future is bright, and I look forward to the exciting opportunities and challenges that lie ahead as we shape the data center services landscape together," says Dustin McLeod, CEO of US Net.
The acquisition is financed with available cash.
The acquisition has no significant impact on Hexatronic’s earnings.
Gothenburg, October 4, 2023
Henrik Larsson Lyon
CEO Hexatronic Group
For more information, please contact:
Henrik Larsson Lyon, CEO Hexatronic Group, +46 706 50 34 00
Pernilla Lindén, CFO Hexatronic Group, +46 708 77 58 32
The information was submitted for publication, through the agency of the contact person set out above, at 6.00 pm CEST on October 4, 2023. This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
About Hexatronic
Hexatronic creates sustainable networks all over the world. We partner with customers on four continents – from telecom operators to network owners – and offer leading, high-quality fiber technology for every conceivable application. Hexatronic Group (publ.) was founded in Sweden in 1993 and the Group is listed on Nasdaq OMX Stockholm. Our global brands include Viper, Stingray, Raptor, InOne, and Wistom®.
About US Net
USNet was founded in 2001 and the company’s headquarters are based in Arlington, Texas with 26 employees. USNet initially focused on office wiring projects and telephone system sales. Shifting gears in 2005, the company ventured into the data center realm, providing cabling solutions encompassing fiber and copper for diverse projects. This transition propelled USNet's evolution into a trusted name for Data Center cabling, infrastructure, and cage construction, with added expertise in equipment integration for large-scale clients. Over the years, the company expanded to offer relocation services, cable bundle fabrication, in-house rack & stack services, and on-site technicians, achieving notable revenue growth and maintaining consistent ownership throughout their 20+ years in business.
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