CSG Limited (CSV) announced an agreement has been reached to sell the Technology Solutions business to NEC Australia. The transaction consideration for the sale of the Technology Solutions business comprises of a base consideration of A$227.5 million; and a potential earn-out payment of up to A$32.5 million. The quantum of the earn-out payment achieved, if any, will depend on the level of certain additional earnings generated prior to 30 June 2012. Net proceeds from the transaction on the base consideration, after capital gains tax and other transaction related costs, are expected to be approximately A$190 million.
CSG Chairman, Mr Josef Czyzewski said: “Following a detailed and rigorous strategic review by the Company, the decision to sell the Technology Solutions business has been made to crystallise value for our shareholders. The Board believes this transaction is in the best interests of the Company and its shareholders. The proceeds from the sale will enable us to pay down debt and return capital to our shareholders.”