Cmgi (MM) (NASDAQ:CMGI)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Cmgi (MM) Charts. Click Here for more Cmgi (MM) Charts.](/p.php?pid=staticchart&s=N%5ECMGI&p=8&t=15)
CMGI®, Inc. (NASDAQ:
CMGI), a global leader in supply chain management services, and Open
Channel Solutions, Inc. (OCS), a leading global provider of entitlement
and e-business management solutions, today announced that they have
entered into a definitive agreement under which CMGI will acquire Open
Channel Solutions, Inc. The all cash transaction values OCS at $24.5
million, is subject to customary closing conditions and is expected to
close during CMGI’s fiscal third quarter. CMGI
will pay a net purchase price of $11.0 million due to a minority
interest in OCS and the repayment of debt it currently holds. CMGI
expects the transaction to be neutral to earnings per share in fiscal
2008 and accretive thereafter.
OCS provides solutions that manage entitlements for software licenses,
maintenance and support subscriptions, hardware features and
rights-managed content. OCS’ solutions,
including its Poetic™ software product, will
enhance the supply chain management services provided by ModusLink®,
CMGI’s supply chain services business, by
managing the entitlements associated with both physical and electronic
delivery of digital content. OCS will also extend ModusLink’s
e-commerce capabilities for digital content distribution. The addition
of these capabilities to ModusLink’s service
portfolio enables the company to offer efficient post-sale electronic
delivery of digital content such as software downloads, electronic
configuration and downloads of other audio, video and data content for
technology devices.
“In today’s
high-tech marketplace, the lines between the physical and electronic
supply chain continue to blur,” said Joseph
C. Lawler, chairman, president and chief executive officer of CMGI. “Vendors
and consumers expect a seamless and customized delivery experience
across hardware, software, content and services. Today’s
announcement is consistent with our strategy to add capabilities and
services that strengthen the value proposition of our core supply chain
management business. OCS is well-established in the marketplace and
brings new technological capabilities that we look forward to adding to
our global supply chain solutions.”
The combination of OCS and CMGI is designed to meet the high-tech market’s
need for a partner who can support both physical and electronic
distribution requirements while managing the complexity of selling
through traditional and electronic channels efficiently. The integration
of OCS’ capabilities, when applied to
ModusLink’s large global footprint,
represents a strong commitment to meeting the evolving needs of the
market.
“High-tech vendors need solutions that extend
past the traditional models,” said Ed Rose,
president and chief executive officer of Open Channel Solutions. “This
new partnership represents a real change in how technology and supply
chain services can be combined to address today’s
business issues with a market-leading solution. Being part of a larger
organization will allow us to grow our technology lead while integrating
with the worldwide services platform at ModusLink. Working with
ModusLink provides our company with access to global operations and a
broad set of resources that will enable us to accelerate our success in
this high-growth marketplace.”
OCS has headquarters in Dedham, Massachusetts, and offices in Utah, the
Netherlands, Japan and Australia. OCS is expected to operate as a wholly
owned subsidiary of CMGI.
OCS was spun out of Modus Media International in 2001. Following CMGI’s
acquisition of Modus Media International in 2004, CMGI assumed a
minority interest in OCS, which is currently held by CMGI’s
venture capital business, @Ventures.
Lawler continued, “Due to our past
involvement with OCS through @Ventures, we are very familiar with the
company’s operations, technology and market
opportunities for entitlement and e-business management solutions, and
we expect a smooth integration. Looking forward, we continue to consider
acquisitions that will further strengthen our supply chain offering and
contribute to our future financial performance.”
About CMGI
CMGI, Inc. (NASDAQ: CMGI), through its subsidiary ModusLink, provides
industry-leading global supply chain management services and solutions
that help businesses market, sell and distribute their products around
the world. In addition, CMGI’s venture
capital business, @Ventures, invests in a variety of technology
ventures. For additional information, visit www.cmgi.com.
About Open Channel Solution
Open Channel Solutions (OCS) is a leading global provider of entitlement
and e-business management solutions, including its flagship Poetic™
product. The company’s self-service offerings
help organizations increase software renewal revenues; extend their
reach and manage sales in the growing SMB market through multi-tiered
channels; effectively distribute electronic software and content; and
eliminate costly, inefficient e-business IT processes. OCS is
headquartered in Dedham, Massachusetts, and has offices in Utah, the
Netherlands, Japan and Australia. For more information, visit www.ocs.com.
About ModusLink
ModusLink Corporation is a leading provider of global, end-to-end supply
chain management solutions. The company provides technology clients in
the software, computing, consumer electronics, storage and
communications markets with customized supply chain solutions that
improve time-to-market, productivity and customer satisfaction while
reducing risk and cost. ModusLink's services include consulting and
planning, sourcing and supply base management, manufacturing and product
configuration, fulfillment, logistics management, e-commerce and the
complete range of aftermarket services. ModusLink has more than 30
facilities in 13 countries, creating the largest global footprint in the
industry. With headquarters in Waltham, Massachusetts, the company is a
subsidiary of CMGI, Inc. (NASDAQ: CMGI). For additional information,
visit www.moduslink.com.
This release contains forward-looking statements, which address a
variety of subjects including, for example, the expected benefits of the
transaction, the expected financial contribution of OCS and the
expansion of capabilities expected to occur as a result of the
transaction. The following important factors and uncertainties, among
others, could cause actual results to differ materially from those
described in these forward-looking statements: The transaction is
subject to the satisfaction of closing conditions and events may occur
which cause the transaction not to be completed; There can be no
assurance that projected financial results will be attained; There can
be no assurance that other suitable acquisitions will be identified or
available on terms acceptable to CMGI; CMGI's success depends on its
ability to execute on its business strategy and the continued and
increased demand for and market acceptance of its solutions and
services; CMGI may not be able to expand its operations in accordance
with its business strategy; CMGI may experience difficulties integrating
technologies, operations and personnel in accordance with its business
strategy; CMGI derives a significant portion of its revenue from a small
number of customers and the loss of any of those customers would
significantly damage its financial condition and results of operations;
increased competition and technological changes in the markets in which
CMGI competes; and risks associated with international operations.
ModusLink represents a significant percentage of CMGI's operations and
the occurrence of any of the foregoing factors with respect to ModusLink’s
business may have an adverse effect on CMGI’s
results of operations and financial results. For a detailed
discussion of cautionary statements that may affect CMGI's future
results of operations and financial results, please refer to CMGI's
filings with the Securities and Exchange Commission, including CMGI's
most recent Annual Report on Form 10-K and Quarterly Report on
Form 10-Q. Forward-looking statements represent management's current
expectations and are inherently uncertain. We do not undertake any
obligation to update forward-looking statements made by us.
CMGI is a registered trademark of CMGI, Inc. and ModusLink is a
registered trademark of ModusLink Corporation. All other company
names and products are trademarks or registered trademarks of their
respective companies.