Fuji Xerox Asia Pacific has entered into an agreement to acquire ASX-listed print and technology solutions provider CSG Limited for A$140.8 million.Fuji Xerox’s cash offer of $0.31 per share is a 31.9 percent premium to CSG’s share price of A$0.235 at close of trade yesterday, valuing the deal at A$140.8 million with an enterprise value of A$181.6 million.
CSG’s Board has unanimously recommended shareholders vote in favour of the deal, providing shareholders with a significant price premium, certainty of value with a 100 percent cash consideration and limited conditionality.
The deal has the support of CSG’s largest shareholder, Caledonia (Private) Investments, who have a 29.1 percent interest in the company.
Under the agreement, CSG will continue operating as a wholly-owned subsidiary of Fuji Xerox Asia Pacific, benefiting from Fuji Xerox’s complementary global print management services and solutions, industry-leading expertise and operational synergies.
The proposed acquisition enables Fuji Xerox to increase its value proposition within the highly competitive print management sector and diversify into technology-as-a-service to offer full-service solutions in Australasia.
CSG Acting CEO & Managing Director, Mark Bayliss said the deal is a great match of culturally aligned companies with strong market positions in complementary sectors.
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.
“The Scheme represents an outstanding outcome for all CSG stakeholders: shareholders, employees, around 10,000 customers and other business partners. The opportunity to realise certain value at a significant premium represents a great outcome for our shareholders, who have been supportive over the company’s recent period of strategic transformation. Fuji Xerox’s globally leading print and technology platform coupled with industry expertise and experience, will enable CSG to drive growth for our customers and employees.”
Fuji Xerox Australia’s managing director Takayuki Togo said the acquisition will enable Fuji Xerox to increase its customer base into Australia’s small and medium business sector.
“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. It is important our customers are in a position to rely on us to address their biggest business challenges, keep them competitive and enable them to focus on their core business,” he said.
The deal is subject to shareholder, court and regulatory authority approval and is expected to be finalised in mid-February 2020.