Fuji Xerox subsidiary Fuji Xerox Asia Pacific has completed a A$140 million scheme of arrangement to buy Melbourne-based print services company CSG.
Through the acquisition, Fuji Xerox aims to further expand its sales office printing equipment and IT services among small- and medium-sized businesses in Australia and New Zealand.
“In New Zealand, the acquisition is a core part of our strategy to get ahead of a maturing print services business, expand and diversify our footprint across the industry, and create a company to better serve our customers today and into the future,” said Peter Thomas, managing director of Fuji Xerox New Zealand.
“Through CSG’s IT services company, CodeBlue, Fuji Xerox will now be able to provide an advanced value proposition for cost-effective and sustainable technology solutions."
CodeBlue was established in 2004 to provide mid-sized New Zealand companies with the kind of IT support that were typically only available to larger organisations.
It was bought by CSG in 2015 for a sum reported to be up to $15 million.
Thomas said with the buyout complete, the focus was now on integrating the companies and bringing their teams and product offerings together to deliver to customers.
Ken Sugiyama, the corporate vice president responsible for Australia/New Zealand regional operations at Fuji Xerox, has been appointed as CSG’s new managing director while CSG will continue operating under the same brand.
Where CSG has a strong foothold with SMB customers, providing printing equipment and IT services for the offices of nearly 10,000 client companies, most of Fuji Xerox’s business is from larger enterprise customers.
The businesses of the two companies were, therefore, largely complementary, Fuji Xerox said.
“CSG will hereon be able to provide those customers with innovative products and IT services owned by Fuji Xerox such as optimising the entire business operation processes, “ Sugiyama, said.
Trading in CSG shares on the ASX was suspended on 5 February and the company should be delisted tomorrow.