Fuji Xerox Signs Agreement to Propose Acquisition of CSG
TOKYO and Auckland, New Zealand, 24 October, 2019 – Fuji Xerox Co., Ltd. has announced today that its subsidiary and the shareholder of Fuji Xerox New Zealand, Fuji Xerox Asia Pacific Pte Ltd, has entered into an agreement with CSG Limited (ASX:CSV) to propose the acquisition of CSG by way of a Scheme of Arrangement.
CSG is an independent company based in Australia and New Zealand that provides printing equipment and IT services for the offices of nearly 10,000 client companies, mainly SMBs. The company was founded in Darwin, Australia in 1988, posted sales of approximately AUD$217.6 million for the fiscal period to June 2019 and currently serves 27 locations with 670 employees.
“The internal changes we’ve introduced in recent years has seen a return to doing the basics really well, which recently translated into a return to profitability and with that confidence from our shareholder to continue investing in our future here in New Zealand,” says Peter Thomas, Managing Director, Fuji Xerox New Zealand.
“This acquisition will materially expand and diversify our footprint across the industry in New Zealand. We’re operating in a highly competitive industry and the two companies are naturally complementary in terms of the client segments we each service.”
Thomas continues: “Our strategy is about getting out in front of a maturing print services business and CSG’s IT Services platform represents an opportunity to strengthen the value proposition we can bring to customers, who are looking to us to lead in bringing integrated and cost-efficient solutions.”
The proposed Share Acquisition is expected to be completed by mid-February 2020.
Future steps necessary to complete the proposed acquisition include obtaining approval by CSG’s shareholders’ meeting, receiving approval from an Australian court, obtaining necessary approvals from the respective regulatory authorities in New Zealand and Australia, and the satisfaction of other customary conditions.