CSG sells Technology Solutions business to NEC for $227.5m
- 30 May, 2012 09:21
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.
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