CSG adds 5 South Australian government agencies to the books

ASX-listed integrator, CSG (ASX: CSV), has made good on its expansion into South Australia, announcing managed services contracts with five government agencies.

In a statement to the ASX, CSG said the server management and support services deals, in addition to other project work in the state, would contribute more than $12 million to the books in the next financial year.

“As a result we have recently opened a new office in Adelaide to cater for the growing number of locally based staff required to deliver our high quality of services required for these contracts,” CSG group general manager of managed services, Brian Lee, said in the statement.

In April last year, CSG followed on from strong half-yearly results to announce it would open up the new office facility in Norwood, South Australia with plans to bring on 100 new staff.

That news came on the back of the managed service provider signing on to the South Australian Government’s Distributed Computing Support Services (DCSS) contract.

CSG has a strong presence in SA through arrangements with BHP Billiton Olympic Dam and Mitsubishi Motors Australia. Earlier this year, subsidiary, CSG Services, was selected as a Preferred Tenderer for two desktop and server services and network management contracts with the Northern Territory Government.

CSG also supplies ICT services to Queensland, Western Australia, South Australia, Victoria and Federal Governments. More recently, it signed a $31 million deal with Canon to take over the servicing of 10,500 multi-function devices (MFDs).

CSG also became a Canon MFD dealer in Sydney, Melbourne, Canberra, Adelaide and Perth in addition to its arrangement with Fuji Xerox.

To help fund the $31 million deal with Canon and other activities, the service provider is raising $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

The new SA government deals continues a period of growth for CSG, who in 2008 acquired Commander’s managed services business, and education ISC CingleView.