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.