NEWS! ModusLink Corporation Acquires Full Ownership of Joint Venture in Japan
Acquisition Strengthens Company’s Global Footprint and Enhances Support to the Japanese Market
ModusLink Corporation, a subsidiary of CMGI, Inc. (NASDAQ: CMGI) and leading provider of global supply chain management solutions, today announced that it has acquired full ownership of its Japan-based joint venture from Sasatoku Printing, which previously held a 60% interest in the entity. ModusLink Japan has been operating as a joint venture, with a full-service solution center in Kanagawa and a regional headquarters in Tokyo, for more than 8 years. Terms of the transaction were not disclosed.
This acquisition strengthens ModusLink’s global presence, while providing it with the ability to provide stronger, broader and more robust solutions both within the Japanese market and to Japan-based customers looking to strengthen their supply chain globally. Further, an essential element of ModusLink’s business strategy has been to focus on key vertical markets, such as consumer electronics, storage and communications, in each of which Japanese companies play a leading role.
“Japan is an important market for ModusLink given that it is home to many of the world’s most significant technology companies,” said Joseph C. Lawler, Chairman, President and Chief Executive Officer of CMGI, Inc. “This acquisition will provide ModusLink with the operational control needed to effectively apply its best practices and leverages its infrastructure to one of the most attractive markets for supply chain services. It also demonstrates the Company’s commitment to growing its business and fully extending its services in Japan and with Japan-based brands.”
Eric Kaufman, formerly ModusLink’s Vice President of Client Solutions for the Americas region, has been appointed to the position of President of ModusLink Japan. Kaufman has more than two decades of experience working in the supply chain space.
“I am pleased to be a part of this important region within ModusLink’s global operations,” said Mr. Kaufman. “I look forward to the opportunity to apply my knowledge of ModusLink’s broad solution set and experience with our customers in all regions to grow our business and help local companies effectively optimize their global supply chains.”
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. With 36 facilities in 13 countries, ModusLink has the largest global footprint in its industry. The company is headquartered in Waltham, Massachusetts and is a subsidiary of CMGI, Inc. (Nasdaq: CMGI). For additional information, see www.moduslink.com.
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, see www.cmgi.com.
This release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of the acquisition of the remainder of the joint venture and the prospects for growth of ModusLink’s business generally and ModusLink Japan’s business in particular. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: ModusLink'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; ModusLink may not be able to expand its operations in accordance with its business strategy; ModusLink may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; ModusLink 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 ModusLink competes; and risks associated with international operations, including an expanded presence in Japan. ModusLink represents a significant percentage of CMGI's operations and the occurrence of any of the foregoing factors 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.
Investors-Financial:
CMGI, Inc.
Pat Sturdevant, 781-663-5012
ir@cmgi.com
or
Media:
ModusLink Corporation
Christine Pothier, 781-663-5080
Marketing Communications Manager
Christine_Pothier@moduslink.com
Source: Business Wire (April 2, 2007 - 4:45 PM EDT)
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