CSG Limited (ASX:CSG) has raised $40 million through an institutional placement, to partly fund the transition towards becoming a Canon Multi-Function Device (MFD) dealer in Australia.

The company has issued 26 million new shares at $1.90 per share to institutional investors, with the deal set to close on May 17.

The news comes as CSG announces it has become a dealer for Canon products MFDs in Sydney, Melbourne, Canberra, Adelaide and Perth, acquiring sub-contractor rights over around 10,500 existing installed devices.

A quarter of the proceeds from the shareplacement will be used to fund an initial $6 million payment to Canon and towards beefing up CSG‘s print business.

Half will be used to fund the previously announced acquisition of Leasing Solutions Limited, and $2 million for the acquisition of Sydney-based CRM and IT helpdesk business Aaromba Technologies.

The remaining $8 million will be used for for working capital and to pay for the costs of the placement.