AUSTRALIA :CANON SELLS 10,500 SERVICE CONTRACTS FOR $31M.

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AUSTRALIA :CANON SELLS 10,500 SERVICE CONTRACTS FOR $31M.

 user 2010-05-17 at 1:51:28 pm Views: 78
  • #24100

    http://www.theaustralian.com.au/australian-it/canon-cuts-big-printer-deal-with-csg/story-e6frgakx-1225865684654
    AUSTRALIA :CANON SELLS 10,500 SERVICE CONTRACTS FOR $31M.
    Canon cuts big printer deal with CSG
    CANON Australia has totted a billion dollar yield after letting its multi-function printer dealership to Darwin-based integrator CSG.CSG has agreed to pay $10 million for licenses to sell the devices from dealerships in national capitals  and for sub-contracting rights over an existing portfolio of 10,500 multi-function devices.Canon Australia senior general manager Craig Manson said that the company’s calculations confirmed the billion yield expectations but declined to reveal the longevity of the contract.”This is a big move for us,” Mr Manson said.CSG yesterday announced that it would raise $40m through an institutional share placement to fund the deal and its recent acquisitions of Leasing Solutions Limited and Aaromba Technologies Limited for $20m and $2m respectively.It’s first payment to Canon of $6m is July 1.

    http://www.networkworld.com/news/2010/051210-csg-signs-31m-printer-deal.html
    CSG signs $31m printer deal with Canon
    ASX-listed CSG (ASX:CSV) has signed a $31 million deal with Canon to take over the servicing of 10,500 multi-function devices (MFDs).CSG has also become a Canon MFD dealer in Sydney, Melbourne, Canberra, Adelaide and Perth in addition to its arrangement with Fuji Xerox. Existing Canon MFD customers will receive services from CSG immediately.

    To help fund the $31 million deal with Canon and other activities, the service provider is aiming to raise $40 million in a fully underwritten institutional placement.
    In February the company said growing synergies between the IT and Print service businesses had resulted in growth across revenues, EBITDA and NPAT for the half year to 31 December 2009.

    The company recorded revenue growth of 30 per cent year on year to $111.9m, EBITDA growth of 10 per cent to $23.9m and NPAT up 11 per cent to $12.3m.At the time, CSG CEO, Denis McKenzie, said in an ASX statement that the company’s IT Services business had a strengthening sales pipeline, margins were down during the half due to new revenue at lower margins.The Print Services business experienced significant sales of new equipment and highly profitable churn to colour printing, McKenzie said.