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Fuji Xerox promises continued third-party support as it scopes CSG's future

Fuji Xerox promises continued third-party support as it scopes CSG's future

IT services unit CodeBlue is a growth engine and helps position the group for digital future

Peter Thomas (Fuji Xerox NZ)

Peter Thomas (Fuji Xerox NZ)

Credit: Supplied

Fuji Xerox has secured supply deals with acquisition CSG's major brands and is promising continued support for customers' printer and copier fleets.

In New Zealand, CSG has been a long-term partner of Konica Minolta, however, in recent years it had expanded to offer other third party products from HP and Brother among others, Peter Thomas, managing director of Fuji Xerox New Zealand, told Reseller News

In addition to those traditional lines of business, in 2015 CSG also acquired CodeBlue, which provides IT services to SMBs. 

Roughly 30 per cent of CSG's New Zealand business is now coming from that CodeBlue business and that was growing at 20 per cent a year, Thomas said.

Australian Securities Exchange (ASX)-listed CSG reported $101 million in New Zealand sales for the year ended 30 June 2019, down from $107 million in 2018, according to filings with the Companies Office. 

Despite that sales decline, CSG New Zealand's bottom line improved from an $18.6 million loss to a $7.9 million profit on reduced cost of sales.

While Thomas said Fuji Xerox could continue to offer support for non Fuji Xerox fleets supplied by CSG, the company will offer customers the chance to change to Fuji xerox equipment in future.

It would also augment those offers with any third party products needed to meet customer demand.

Thomas said the CSG buyout did not require Overseas Investment Office approval thanks to treaties with Singapore, where Fuji Xerox Asia Pacific is based.

There was, however, extensive engagement with competition regulator the Commerce Commission, which decided late last year to let the transaction proceed.

Serious competitors remain in the forms of HP, Ricoh, Canon and others.

Konica Minolta declined to comment on its plans, telling Reseller News it would make announcements in the next couple of weeks.

Thomas said the buyout was a great opportunity not just for Fuji Xerox but for CSG partners and customers to become part of a bigger organisation with greater reach, products and services. 

In addition, the group could offer complementary services through CodeBlue.

"Let’s be honest, the core print business that we’ve been known for and CSG/Konica Minolta is known for is in serious decline in this market," Thomas said. 

"New Zealand is going digital and I think everyone is aware of that."

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