Fuji Xerox has announced it plans to acquire ASX-listed service provider CSG Limited for $140 million.
All members of CSG’s board have recommended that shareholders vote for the deal, and the company’s largest shareholder Caledonia Investments — which owns just under 30 percent of CSG — will follow suit.
In an ASX announcement (pdf) released today, Fuji Xerox said it aims to expand business operations in the SME sector with the acquisition and strengthen its local presence in ANZ with IT print device and managed print solutions.
“The combination of Fuji Xerox and CSG represents an exciting opportunity for our stakeholders, employees and business partners, as well as enhancing the products and services available to help customers navigate their evolving technology needs,” Fuji Xerox president and representative director Kouichi Tamai said.
CSG’s board said the $140 million on offer represents a 31 percent premium over the closing price of CSG shares yesterday at $0.235 per share.
CSG shareholders will vote on the proposal around early February 2020 and the acquisition is expected to complete around mid-February if approved.
“CSG is the ideal strategic fit for Fuji Xerox’s global business with our expertise in IT managed services and office solutions for the SME sector in Australia and New Zealand complementing Fuji Xerox’s leading print and technology operations,” CSG chairman Bernie Campbell said.
“The all-cash offer is attractive for shareholders and reflects the positive impact of the transformation achieved to date as part of our 2021 strategy. Our more than 10,000 SME customers across Australia and New Zealand will benefit from our long-term integration with Fuji Xerox through increased scale, broader product and service capability.”