@Ventures Portfolio Company Enters into Definitive Agreement to be Acquired.Avamar Technologies to be Acquired by EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. WALTHAM, Mass. -- CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc. (Nasdaq: CMGI) announced today that one of the companies in which its @Ventures venture capital business has an investment, Avamar Technologies, Inc., has signed a definitive agreement to be acquired by EMC Corporation EMC Corporation (NYSE: EMC) is an American Fortune 500 and S&P 500 manufacturer of software and systems for information management and storage. It is headquartered in Hopkinton, Massachusetts, USA. (NYSE NYSE See: New York Stock Exchange : EMC). Under the terms of the agreement, EMC will acquire Avamar in a cash transaction for approximately $165 million. The acquisition is expected to be completed within 30 days. "We are excited about the contributions @Ventures is making to our company," said Joseph C. Lawler, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CMGI. "We continue to be encouraged by the future prospects of our venture capital investments, especially in light of an active M&A market that has been fueled by both strategic buyers and private equity financial buyers." CMGI expects to receive initial net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $28.5 million in its second fiscal quarter as a result of this transaction. The company may receive additional proceeds of up to $3.3 million, assuming there are no claims against funds to be held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . About CMGI CMGI, Inc. (Nasdaq: CMGI), through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI's venture capital business, @Ventures, invests in a variety of technology ventures. For additional information, see www.cmgi.com. About @Ventures @Ventures, CMGI's venture capital business, invests in early-stage and mid-stage technology companies. Formed in 1995, @Ventures has funded more than 70 Internet, software, IT and clean energy companies. The primary focus of @Ventures' fifth fund, formed in 2004, is on investments in clean energy technologies, including alternative energy, energy efficiency, and water purification  It has been suggested that , , and be merged into this article or section. and management. For additional information, see www.ventures.com.
This release contains forward-looking statements, which address a variety of subjects including, for example, the expected initial and future proceeds from the announced transaction, the financial impact of the transaction on CMGI, our assessment of the companies within our venture capital portfolio and their prospects, and our assessment of the mergers and acquisitions market. All statements other than statements of historical fact, including without limitation, those with respect to future proceeds are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the mergers and acquisitions and IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. markets are inherently unpredictable and liquidity events for companies in our venture capital portfolio may not occur; future proceeds from liquidity events are based upon the release of escrowed funds and in the event of successful escrow claims, a portion or all of the future proceeds may not be received as expected. For a detailed discussion of cautionary statements that may affect CMGI's future results of operations and financial results, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. |
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