CMGI Buys Modus Media

CMGI Buys Modus Media

Copyright 2004, Traffic World, Inc.

In a deal designed to help high-tech manufacturers and other shippers better manage international freight, CMGI is buying supply chain services company Modus Media. The combined company will have revenue of approximately $1 billion and 38 locations across 13 countries.

George McMillan, president and CEO of CMGI, said Modus Media, together with CMGI''s logistics subsidiary, SalesLink, "covers all major markets and includes a very strong presence in China."

Skip Boothby, president of SalesLink, said the combined company will offer a full set of supply chain services for global high-tech companies. "There are not a lot of places where global high-tech companies can go for access worldwide and management and distribution from hubs around the world and postponement strategies, customization and quick turnaround times," he said. Modus provides services to the hardware, software, telecommunications, broadband and wireless industries. It operates 23 solution centers in 13 countries. SalesLink maintains 15 facilities in seven countries.

CMGI, formerly an Internet holding company, will acquire all of the stock of Modus for approximately $157.5 million in CMGI common stock and a net cash payment of approximately $73 million to retire indebtedness. The transaction is expected to close in the third quarter.

SalesLink offers business to business and business to consumer fulfillment, channel distribution and reverse logistics, Boothby said. "We don''t sell software at all. We provide services," he said.

The deal between the two companies "will close at the end of July at the earliest," said Boothby.