Fuji Xerox to acquire CSG
Fuji Xerox has signed an agreement with CSG proposing to acquire the Australian-based IT service provider in a move to expand the sales of its IT solutions and office printing equipment to small to medium businesses in Australia and New Zealand.
According to Fuji Xerox Australia managing director Takayuki Togo, the acquisition aligns with the company's expansion plans.
"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," he said.
Under the agreement, Fuji Xerox will acquire all the shares in CSG.
While subject to approval by CSG shareholders and regulatory bodies in Australia and New Zealand, the proposed acquisition would see CSG become a subsidiary of Fuji Xerox Asia Pacific.
See also: Don't say goodbye to paper: How AI makes printers--and paper--relevant again (TechRepublic)
CSG noted that its largest shareholders, Caledonia Private Investments and its associates, which currently have a 29% holding in the company, intend to vote in favour of the scheme.
The proposed acquisition will be for cash considerations, both companies confirmed. CSG stated the proposed price offer per share is AU$0.31.
CSG added the scheme has valued CSG's issued equity at AU$140.8 million and enterprise value at AU$181.6 million.
The scheme is expected to be completed by mid-February 2020.
The last time CSG was approached for a takeover bid was in 2011 by an unnamed company. At that time, the proposed offer price per share was AU$1.20.
The company later entered into a deal with NEC Australia that bought CSG's Technology Solutions business for AU$227 million. The deal led CSG to restructure its print services division.
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