Fujifilm Holdings subsidiaries, Fuji Xerox Australia and Fuji Xerox Asia Pacific, have entered into an agreement with CSG (ASX:CSV) to propose acquisition of the latter for $140.8 million.
Under the agreement, Fuji Xerox Asia Pacific has proposed to acquire all shares of CSG by way of Scheme of Arrangement under Australian law.
The proposed acquisition will be for cash consideration and the Scheme is expected to be complete by mid-February 2020.
Once complete, the acquisition will see Fuji Xerox Asia Pacific acquire all of CSG’s shares and CSG becoming its subsidiary.
The CSG brand is expected to continue operating as a wholly-owned subsidiary.
Founded in 1988, CSG is an independent company based in A/NZ that provides printing equipment and IT services. It mainly plays in the SMB space. The company posted sales of about $217.6 million for the fiscal year ending June 2019 and has 27 offices and 670 staff.
According to Fuji Xerox Australia managing director Takayuki Togo, the acquisition reflects the company’s desire to deliver growth and expand its customer base into Australia’s SMB sector.
“This delivers on our strategy to broaden the Fuji Xerox offer to a diverse range of organisations across various businesses with the addition of relevant software, solutions and services that customers are now demanding from print and document providers,” Togo said, in a statement.
“It is important our customers are in a position to rely on us to address their biggest business challenges, keep them competitive and enable them to focus on their core business.
“About 90 per cent of the companies in Australia and New Zealand are SMBs and this acquisition allows Fuji Xerox to reach those customers with its… solutions. SMB customers will now be able to increase access to services and products to enable their businesses to thrive by leveraging the expertise of Fuji Xerox in printing and imaging.”
In completing the acquisition, the company needs to obtain approval from CSG’s shareholders at a shareholder meeting, receive approval from an Australian court, and obtain necessary approvals from A/NZ authorities, in addition to satisfying other customary conditions.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter