The founders, Drent Knight and Trilos Wendal, had broken away from Cybe Drives after being corrupted by Darth Cyrus. Taking off and stealing designs, Drent and Trilos fleed into Dark Reach space, to the capital of Xelos V, and there they were tasked with manufacturing ships.
As a result, the two founded Xelosian Conglomerate Enterprises, basing the name on their cooperation to found it. Drent formerly worked under Cybe Drives as producer of ships, while Trilos worked for Cybe Vehicle Works before defecting. While unknown to the outer galaxy, the organization was affiliated with Dark Reach ever since it's founding.
Following the founding of the main body, several branches were formed for determined construction. These included the Xelosian Conglomerate Engineering and Xelosian Conglomerate Weaponry companies, with the former developing ground vehicles, and the latter developing weaponry. In conjunction with both of these companies, the first product, the Republic-model Star Frigate was developed, soon followed by the Tyrant-model destroyer and the Imperial-model destroyer designs.