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

[Anonymous]

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.

[Author]

May 17, 2010 at 1:52 PM