ASX-listed CSG Limited acquires CodeBlue

ASX-listed CSG Limited acquires CodeBlue

CSG has signed an agreement to acquire CodeBlue for NZ$5.0 million cash, and an additional NZ$2.7 million in contingent cash payments and further earn out considerations capped at a total acquisition sum of NZ$15 million.

CSG (ASX: CSV) is a publicly listed technology as a service organisation with a complete portfolio of solutions to deliver “one bill, one partner, one cloud”. CSG provides managed technology, print and innovative cloud solutions sold as a service that are suitable for the small to medium enterprise but also scale to meet the needs of the larger enterprise.

CSG has a broad footprint across Australia and New Zealand with offices in every capital city and a national service network supporting more than 15,000 customers across the Tasman.

In FY15 CSG reported revenues in excess of $A220million, a 13 percent increase on the previous year.

CSG has a well-established business in New Zealand and strong partnerships with some of the world’s leading brands including Canon, Konica Minolta, Samsung, HP, Lexmark and Microsoft. Yesterday CSG announced its partnership with 8x8 for cloud based unified communications.

CSG Chief Executive Officer Julie-Ann Kerin says, “There is a natural fit between CodeBlue and CSG and the acquisition provides an attractive platform to support the CSG strategy in Australia and New Zealand.”

CodeBlue enhances CSG’s expertise in delivering IT support to small and medium enterprise customers. It is proposed CodeBlue will leverage its sophisticated IT service desk and remote support and monitoring platform to provide the ongoing support service delivery unit for CSG technology customers across Australia and New Zealand. CodeBlue customers will also benefit from gaining access to CSG’s broad range of technology solutions.

From FY16 customers will be able to source print, unified communications, desktop, display, IT infrastructure, data storage and back up all as a service, supported by CodeBlue’s high quality team.

“The way we go to market and support these solutions is the real differentiator for customers,” Julie-Ann Kerin says.

“The value proposition is that customers will be able to source multiple products and solutions from one partner, with one simple monthly bill and get access to the latest state-of-the-art technologies for minimal capital outlay,” Kerin says.

CodeBlue Chief Executive Officer Chris Mackay says: “By becoming part of CSG, CodeBlue will be even better positioned to execute on its vision of providing enterprise-strength nationwide IT service and support to companies with up to around 300 seats.

“We will continue to develop CodeBlue’s sophisticated IT service desk and remote support and monitoring platform and to provide world class, high quality service to our customers,” he says.

“We believe the new ownership structure and underpinning strategy will enable us to deliver even greater value to our customers through offering complementary solutions that can meet all of their technology needs.”

CodeBlue’s highly experienced management team has a successful track record of delivering IT managed services and migrating customers to cloud-based products, and will remain in place.

CodeBlue is a leader in the SME market in New Zealand providing IT managed services to customers with up to 300 employees. CodeBlue was founded in 2004 by current executive director Ken Davis, later joined by current CEO Chris Mackay, a former CEO of Computerland. It has grown strongly to its current market leadership position with over 160 staff and nine branches around the country.

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