Aussies buy Konica for $132m

Australian IT services firm CSG is set to buy a 90 per cent stake in Konica Minolta Business Solutions for NZ$107 million and pay a further NZ$25m for full ownership of associated business Leasing Solutions.

ASX-listed CSG said it planned to fund a portion of the acquisitions through a A$65m share placement underwritten, subject to shareholder approval. The deal is effective from January.

Konica Minolta is a market leader in the New Zealand document management solutions and digital production printing markets. Leasing Solutions operates a standard finance lease model and currently manages an AA- rated finance book worth NZ$130m.

Both businesses belong to the Onesource Group in New Zealand, which also owns Cogent Communications and Imagetec Office Solutions, formerly Danka.

Onesource chief executive Evan Johnson says the two businesses have prospered under the current ownership structure despite a difficult recessionary environment. Having come through the downturn both businesses are well positioned for growth, he said.

Combined Konica Minolta and Leasing Solutions are expected to generate NZ$25m worth of revenue before interest and tax in the 2010 financial year.

Mr Johnson said the transaction had the full support of Konica Minolta Business Technologies in Japan, which will retain its 10 per cent shareholding in the New Zealand business.

Under the deal Mr Johnson will retain his role as the managing director of the New Zealand businesses and will join the CSG Australasian steering committee to support the development of the CSG business on both sides of the Tasman.

"This is an exciting opportunity for our business as we combine our leadership position in New Zealand alongside a highly skilled team in Australia with the resources, the ability and the desire to embark on a significant growth programme," he said.

In New Zealand, Konica Minolta boasts NZ$120m annual turnover and around 25 per cent of the market; earnings before interest and tax of NZ$20m are forecast for the current financial year. Leasing solutions is picked to return a profit of $4.5m next year.
AUSTRALIAN IT services firm CSG is set to buy a 90 per cent stake in Konica Minolta Business Solutions for NZ$107 million and pay a further NZ$25m for full ownership of associated business Leasing Solutions.

ASX-listed CSG said it planned to fund a portion of the acquisitions through a A$65m share placement underwritten, subject to shareholder approval. The deal is effective from January.

Konica Minolta is a market leader in the New Zealand document management solutions and digital production printing markets. Leasing Solutions operates a standard finance lease model and currently manages an AA- rated finance book worth NZ$130m.

Both businesses belong to the Onesource Group in New Zealand, which also owns Cogent Communications and Imagetec Office Solutions, formerly Danka.

Onesource chief executive Evan Johnson says the two businesses have prospered under the current ownership structure despite a difficult recessionary environment. Having come through the downturn both businesses are well positioned for growth, he said.

Combined Konica Minolta and Leasing Solutions are expected to generate NZ$25m worth of revenue before interest and tax in the 2010 financial year.

Mr Johnson said the transaction had the full support of Konica Minolta Business Technologies in Japan, which will retain its 10 per cent shareholding in the New Zealand business.

Under the deal Mr Johnson will retain his role as the managing director of the New Zealand businesses and will join the CSG Australasian steering committee to support the development of the CSG business on both sides of the Tasman.

"This is an exciting opportunity for our business as we combine our leadership position in New Zealand alongside a highly skilled team in Australia with the resources, the ability and the desire to embark on a significant growth programme," he said.

In New Zealand, Konica Minolta boasts NZ$120m annual turnover and around 25 per cent of the market; earnings before interest and tax of NZ$20m are forecast for the current financial year. Leasing solutions is picked to return a profit of $4.5m next year.

- © Fairfax NZ News