ASX-listed CSG agrees to buy NZ IT firm CodeBlue for as much as $15 mln

Tuesday 18th August 2015

CSG, the ASX-listed 'technology-as-a-service' company, has agreed to acquire New Zealand information technology services firm CodeBlue for as much as $15 million including earn-outs to extend its IT support to small and medium-sized businesses.

CSG has agreed to buy CodeBlue for $5 million cash and $2.7 million in contingent cash payments and further earn-out considerations, capped at a total purchase price of no more than $15 million, the company said. CSG this week raised A$30 million in a placement to institutional investors to fund the purchase and pursue other growth opportunities, it said.

“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, CSG chief executive Julie-Ann Kerin said in a statement. "CodeBlue customers will also benefit from gaining access to CSG’s broad range of technology solutions."

CodeBlue's shareholders include chief executive Chris Mackay and executive director and co-founder Ken Davies. It has 160 staff and nine branches in New Zealand.

“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," Mackay said.

CSG shares rose about 6 percent to A$1.68 on the ASX and have soared 41 percent this year. The stock is rated a 'buy' based on the consensus of four analysts polled by Reuters.

BusinessDesk.co.nz

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