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The Asia Pacific arm of Fuji Xerox has entered into an agreement to acquire Australian printing and business services company CSG (ASX: CSV) for $140 million.
The proposed deal will see Fuji Xerox subsidiary Fuji Xerox Asia Pacific acquire the listed Australian business for $0.31 per issued CSG share, valuing the deal at $140.8 million and an enterprise value of $181.6 million.
The proposed deal represents a significant premium for CSG shareholders, with the proposed $0.31 per share a 31.9 per cent premium to the closing price of CSG shares of $0.235 per share on Wednesday 23 October.
The board of CSG has unanimously recommended shareholders vote in favour of the proposal at an upcoming meeting in February 2020.
CSG's largest shareholder Caledonia (Private) Investments, who holds a 29.1 per cent interest in the company, has advised the CSG board that it intends to vote in favour of the scheme.
CSG chairman Bernie Campbell says the two companies are a perfect fit for each other.
"CSG is the idea strategic fit for Fuji Xerox's global business with our expertise in IT manages services and office solutions for the SME sector in Australia and New Zealand complementing Fuji Xerox's leading print and technology operations," says Campbell.
"The Scheme provides certainty for our shareholders to realise value at a significant premium. It will also provide growth opportunities for our 670 employees within a global and culturally aligned business."
Fuji Xerox Australia's managing director Takayuki Togo says the company intends to take advantage of CSG's large Australian footprint of nearly 10,000 client companies that are mostly SMEs.
"The acquisition reflects the company's desire to deliver growth and expand its customer base into Australia's small to medium businesses sector," says Togo.
"This delivers on our strategy to broaden the Fuji Xerox offer to a diverse range of organisations across various businesses with the addition of relevant software, solutions and services that customers are now demanding from print and document providers. It is important our customers are in a position to rely on us to address their biggest business challenges, keep them competitive and enable them to focus on their core business."
The deal remains subject to shareholder, court, and regulatory authority approval.
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