CSG sells Technology Solutions business to NEC for $227.5m

The ICT service provider wants to focus on its Print Services business instead.

CSG (ASX: CSV) has agreed to sell its Technology Solutions business to NEC Australia for around $227.5 million

The Technology Solutions division deals with system integration, consulting, managed services, and IT outsourcing.

Shares in CSG Services and CSG Solutions will go to NEC.

CSG plans to focus on growth opportunities in its Print Services business and restructure the division after the sale is finalised.

There is a potential earn-out payment of up to $32.5 million, which will depend on the level of certain additional earnings made before June 30.

CSG chairman, Josef Czyzewski said the decision to sell up the business was made to “crystallise value” for shareholders.

“The proceeds from the sale will enable us to pay down debt and return capital to our shareholders,” he said in a statement.

CSG is expected to receive a net sum of $190 million from the transaction.

How it will distribute excess capital to shareholders will be announced in August along with CSG’s full year results.

The sale is due to be completed by July 2.

Follow the author of this article on Twitter: @spandaslui

2015 State of The IT Channel Survey : IT'S TIME!!! Fill in this year's State of the IT Channel Survey and be in the running to win great prizes. CLICK HERE

Join the ARN newsletter!

Error: Please check your email address.

More about CSGNECNECNECTechnologyTechnology Solutions

ARN Directory | Distributors relevant to this article

Show Comments
 

Latest News

Mar 27
AppSense takes the wraps off its new analytics platform
Mar 27
SugarCRM beefs up its global executive team with three new hires
Mar 27
'Do Not Call' spam phone call legislation passed
Mar 27
HubOne lands its first channel partnership in Australia
More News
30 Mar
Australian experts to address cybersecurity challenges and solutions at Canberra...
21 Apr
APJ Progress Spark Conference
22 Apr
2015 Innotribe Startup Challenge
27 Apr
Disruptocon
View all events