CSG today confirmed it had completed the $227.5 million sale of its technology solutions division to NEC.
The Australian IT integrator and print services specialist said it would reveal details of its future company structure late next month when it delivers its full year results.
It expects it will go into debt to support the "future growth of the company".
The possibility of a CSG acquisition first emerged in September last year, with speculation focused on the fate of the company's successful print services division.
NEC’s offer instead for CSG’s IT division was confirmed in late May.
NEC Australia managing director Alan Hyde told CRN at the time the acquisition meant NEC would be able to offer customers "a true end-to-end offering".
He said the deal was a key strategic step for the company and would support its goal of becoming one of Australia's top five ICT companies within the next five years.
"We will now compete for even bigger projects and open doors into new markets,” Hyde said.
The CSG business will be brought in as a newly-branded, independent business unit of NEC Australia with senior executives reporting directly to Hyde. It will be named NEC IT Solutions.
CSG in late May revealed to the market it would streamline its print services business across A/NZ, cutting 30 jobs from the 600-strong workforce as well as $13 million in costs this year, and a further $4 million in 2013.
CSG denied the restructure was a move to make the print division more attractive to potential buyers.
“This is a really exciting time. It’s a real opportunity to restructure print services Australia and New Zealand to deliver annualised cost savings and return really significant value,” a CSG spokesperson told CRN. “Our vision is to become a leading print provider.”
Copyright © CRN Australia. All rights reserved.
Issue: 328 | June 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.