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CMGI Acquires PTS Electronics to Bolster Reverse Logistics for High-tech Companies
Expands into telecommunications and consumer electronics repair services with addition of largest independent service provider in $45 million deal; adds to ModusLink offering
Waltham, MA — May 23, 2008 — Supply chain management service provider CMGI has acquired PTS Electronics (PTS), one of the largest independent consumer-electronics service repair and reverse logistics providers, as the company continues to build its service supply chain portfolio.
PTS is one of the nation's top remanufacturers of wireless and cellular phone products, and the largest single source for remanufactured HDTV and digital main boards and tuners. The all cash transaction is valued at approximately $45 million.
With four facilities in Bloomington and Indianapolis, Indiana, PTS has approximately 500 technical and support staff. Based on unaudited financial statements, the PTS business generated 2007 revenue of approximately $37.4 million.
"The variety of consumer electronics service solutions offered by PTS will create a strategic extension of the end-to-end supply chain solutions offered through ModusLink, CMGI's supply chain services business, enabling a more robust reverse logistics solution for high-tech clients," CMGI said in its statement announcing the deal.
PTS' capabilities add to ModusLink's current reverse logistics services that include service parts management, contact center support, asset disposition channels and "Level 1 repair." The PTS acquisition also will integrate reverse and forward logistics operations, enabling a more effective global supply chain service for ModusLink clients, according to CMGI.
"As more consumer electronics products proliferate in the market and features continue to merge into a single device, there is an increasing need to both accelerate and improve the value recovery from the returns process, and fast, reliable, economical service is essential," said Joseph C. Lawler, chairman, president and CEO of CMGI. "By acquiring PTS, we will be positioned to meet our clients complete reverse logistics needs. We view the aftermarket services space as a source of potential revenue and earnings growth in the future, and expect PTS to form the cornerstone of that service offering."
PTS is one of the nation's top remanufacturers of wireless and cellular phone products, and the largest single source for remanufactured HDTV and digital main boards and tuners. The all cash transaction is valued at approximately $45 million.
With four facilities in Bloomington and Indianapolis, Indiana, PTS has approximately 500 technical and support staff. Based on unaudited financial statements, the PTS business generated 2007 revenue of approximately $37.4 million.
"The variety of consumer electronics service solutions offered by PTS will create a strategic extension of the end-to-end supply chain solutions offered through ModusLink, CMGI's supply chain services business, enabling a more robust reverse logistics solution for high-tech clients," CMGI said in its statement announcing the deal.
PTS' capabilities add to ModusLink's current reverse logistics services that include service parts management, contact center support, asset disposition channels and "Level 1 repair." The PTS acquisition also will integrate reverse and forward logistics operations, enabling a more effective global supply chain service for ModusLink clients, according to CMGI.
"As more consumer electronics products proliferate in the market and features continue to merge into a single device, there is an increasing need to both accelerate and improve the value recovery from the returns process, and fast, reliable, economical service is essential," said Joseph C. Lawler, chairman, president and CEO of CMGI. "By acquiring PTS, we will be positioned to meet our clients complete reverse logistics needs. We view the aftermarket services space as a source of potential revenue and earnings growth in the future, and expect PTS to form the cornerstone of that service offering."
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