Tempe, AZ July 1, 2002 Two acquisitions to report today in the B2B world, with CMGI picking up iLogistix and NxTrend Technology buying CorpDNA.
CMGI said its purchase of Software Logistics Corp., a California corporation doing business as iLogistix, expands the venture capital firm's toehold in the supply chain management field.
The combination of iLogistix with another CMGI holding, SalesLink, a provider of outsourced manufacturing support services, will help build the company's ability to compete in the markets for supply chain and fulfillment solutions, "particularly those serving large computer OEMs [original equipment manufacturers] and electronics manufacturers," according to George McMillan, CEO of CMGI.
McMillan also said in a company statement that CMGI expected the acquisition to be operationally profitable, and that iLogistix' anticipated 2002 revenues of about $300 million would triple the size of CMGI's business in supply chain management and fulfillment.
The transaction is expected to close in July 2002 subject to approval by the U.S. bankruptcy court that has jurisdiction over the assets of Software Logistics Corp. and by the administrator in the Netherlands that has jurisdiction over certain of iLogistix operations and assets. Under the terms of the agreement, CMGI, through a wholly-owned subsidiary, will pay approximately $41 million cash for the assets of iLogistix, and assume certain liabilities.
iLogistix is an integrated design, implementation and supply chain management company, providing a suite of traditional and e-commerce supply chain services, including procurement, inventory management, assembly, fulfillment, and distribution services. iLogistix' customer base, including Hewlett-Packard, Microsoft and Adobe.
SalesLink provides outsourced manufacturing support services, in which clients retain SalesLink to plan, buy and build-to-order sub-assemblies for computer equipment and consumer electronic products.
CMGI's other holdings include AltaVista and uBid.
Meanwhile, software company NxTrend Technology is acquiring CorpDNA, a provider of customer relationship management (CRM) solutions.
NxTrend, a 23-year-old company, offers solutions that distributors use for inventory management, order processing, sales and customer service and warehouse logistics. CorpDNA is a provider of Web-enabled CRM and sales force automation (SFA) applications and services.
The acquisition, said NxTrend's president and CEO, Michael Cornell, "augments NxTrend's strong distribution solutions offering, complements the overall goals of our continued acquisition strategy and provides us with an immediate presence in the CRM marketplace."
Ross Elliott, NxTrend's vice president of operations, said that in addition to its solutions for CRM, SFA and marketing campaign management, CorpDNA will continue to work on its solutions for the employee and human resources management market.
Terms of the CorpDNA acquisition were not announced.