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 1:52:11 pm Views: 57
  • #24083

    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.