CSG buys NZ print services business

Northern Territory-based IT services firm CSG has announced it will acquire printing company, Konica Minolta Business Solutions New Zealand (KMBS), and its financing business, Leading Solutions Limited (LSL).

CSG has bought 90 per cent of the printing company for NZ$107 million (AU$84 million) and LSL for NZ$25 million (AU$20 million) through the acquisition of current KMBS owner and New Zealand office technology group Onesource Group Limited.

KMBS exclusively imports, sells and services Konica Minolta multifunction devices throughout New Zealand.

CSG said the acquisition was effective immediately and complements the company's existing Australian print services business.

"The acquisitions are strategically and financially compelling. It is a logical next step in the growth of CSG, and in particular our print services business," said CSG chief Denis Mackenzie. "We are extremely familiar with the KMBS business model and see it as a low risk business, with large potential for growth over the next three to five years."

The acquisition will be funded through a fully underwritten institutional placement of new shares in CSG which it expected to raise AU$65 million and is subject to shareholder approval.

The company halted trading today in anticipation of the acquisition. Trading resumes on Friday.

The IT services firm earlier this week reported that several bids it had placed with the NT Government last December, including a whole-of-government desktop and server deal, had entered into the contract negotiation stage.

CSG appeared to have weathered the economic downturn over the past year, in August reporting revenues over the year to 30 June grew 48 per cent to reach AU$197 million, with net profits rising by 24 per cent to AU$23.2 million.