After months of divesting, CMGI , is investing again.
The Andover, Mass., Internet operating company this morning is buying iLogistix, a Fremont Calif., supply chain
management specialist for $41 million in cash and the assumption of certain liabilities.
The deal for iLogistix, which is in Chapter 11 bankruptcy protection, is expected to close at month’s end, pending court approval.
“(Our) plan includes the acquisition of companies which are complementary to our existing core assets, and which meet our criteria for growth and financial
performance,” said George McMillan, CMGI’s CEO.
Following the merger, iLogistix will be folded into CMGI’s own supply chain subsidiary, SalesLink, based in Boston’s
Charlestown neighborhood.
The combined company will serve large computer and electronics manufacturers both in the United States and abroad. iLogistix has operations in the United States,
The Netherlands, Singapore and Taiwan and had 2002 revenues of approximately $300 million.
SalesLink will add customers Hewlett-Packard, Microsoft and Adobe, to its stable of Cisco Systems, Sony Electronics and Sun Microsystems. CMGI expects to
retain the bulk of iLogistix’s 500 full-time employees.
Its the second suitor for iLogistix. An earlier sale to Zomax , of Minneapolis, Minn., fell
through.
Last week, CMGI withdrew an offer to buy the remaining shares of Engage it does not already own. Other CMGI subsidiaries include search engine AltaVista and Web site and application host NaviSite.