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CSG Secures $31M Printer Deal with Canon, Expands Market Presence.
ASX-listed CSG (ASX) has announced a significant $31 million agreement with Canon, which will see the company take over the servicing of 10,500 multi-function devices (MFDs). This strategic deal marks a major expansion for CSG, as it also becomes a Canon MFD dealer in key Australian cities including Sydney, Melbourne, Canberra, Adelaide, and Perth, complementing its existing partnership with Fuji Xerox.Under the new arrangement, current Canon MFD customers will immediately benefit from CSG’s service expertise.
To finance the $31 million deal with Canon and support its broader business activities, CSG is planning to raise $40 million through a fully underwritten institutional placement.
In its latest financial update, CSG reported a robust performance for the half-year period ending December 31, 2009. The company achieved a 30 percent increase in revenue, reaching $111.9 million. EBITDA grew by 10 percent to $23.9 million, while NPAT rose 11 percent to $12.3 million.
Denis McKenzie, CEO of CSG, commented in an ASX statement that the company’s IT Services division is seeing a growing sales pipeline. However, he noted that margins had been impacted by new revenue streams with lower margins. Meanwhile, the Print Services division has seen notable success, with strong sales of new equipment and a shift towards more profitable color printing options.
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