Minneapolis March 20, 2002 Technology service provider Zomax announced this week that had terminated its agreement to purchase the assets of bankrupt supply chain services provider iLogistix, which has filed suit against Zomax.
Zomax had won approval from a bankruptcy court in February to proceed with the purchase, which had an estimated price tag of $24.6 million in cash, plus the assumption of $12.2 million in liabilities. The deal was set to close on February 28.
At the time of the court's approval, Jim Anderson, chairman and CEO of Zomax, said the acquisition would expand Zomax's product and geographic footprint and would provide an entry point into the Asian market.
In a statement this week, Zomax said that iLogistix had not satisfied unspecified "significant conditions to closing." Zomax was seeking the return of a deposit paid to iLogistix, plus accrued interest, and Zomax said it would record a charge of approximately $.04 cents per share for the current fiscal period to cover transaction expenses.
Meanwhile, iLogistix this week initiated a lawsuit against Zomax over the termination of the agreement. The suit reportedly asks that Zomax be required to complete the transaction or pay unspecified damages.
In its statement, Zomax said it believed it acted properly and "intends to defend itself vigorously" against the suit.
Anderson also said this week that Zomax would be exploring other acquisition opportunities and would look to expand its business domestically and internationally, particularly in the Asian market, during 2002.
Zomax is an outsource provider of process management services, including call center and customer support solutions, supply chain and inventory management, packaging, warehousing, distribution and fulfillment. iLogistix was a provider of supply chain consulting, management and outsourcing services.