CSG – claimed to be the only ASX-listed company with headquarters in the Northern Territory – has bought out Onesource New Zealand, which owns Konica Minolta Business Solutions (KMBS) and sister finance provider Leasing Solutions Limited, in what it has dubbed a “compelling strategic fit”.
CSG chairman Philip Chambers said: “Onesource was a standout acquisition target due to its outstanding performance in the New Zealand market and the high calibre of the management team.”
The company said one reason for the purchase was Onesource’s “strong industry growth dynamic”, adding that it “expected New Zealand to follow Australia’s migration to colour”.
Chambers, a former managing director of Fuji Xerox Australia, will also welcome Onesource chief executive Evan Johnson (pictured) to “a high-powered team of print industry experts”, the CSG Australasian Steering Committee.
The committee also includes CSG chief executive Denis Mackenzie and David Ward, the former Fuji Xerox head of Australia sales and marketing.
Mackenzie called the merger “strategically and financially compelling”, allowing CSG to expand its footprint in the New Zealand print market.
The buyout is claimed to be low risk and require minimal integration. It caps a year of growth and acquisition at CGS, including a 48% year-on-year revenue boost to $197.7m and the mid-year buyout of IT company Delexian. In mid 2008, it acquired Canberra-based outsourced printer management business ATI Group.
The company’s share price rose 8.5% last Friday on the announcement.
CSG claimed its print services division in Australia was performing above budget and had a strong outlook for the 2010 financial year.
Evan Johnson, who took over Onesource in a management buyout in 2005, will remain as managing director of the New Zealand businesses. “This is an exciting opportunity for our business as we combine our leadership position in New Zealand alongside a highly skilled team in Australia with the resources, the ability and the desire to embark on a significant growth programme.
“The keys to success in the document solutions market are providing tangible value for customers, and matching high-quality products with outstanding levels of service and support. We have excelled in all these areas in a difficult climate and we will continue to invest to ensure we stay at the top,” he added.
KMBS was claimed to have a 25% market share in the New Zealand document management sector. Its production print offering includes the Bizhub range as well as distributing Océ VarioStream and VarioPrint machines and HP’s wide-format Designjet family.
CSG started in Darwin in 1988 as a Xerox Business Centre, and became CSG when it expanded into the information and communications industry.
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