Steel Connect, Inc.
Company typePublic
Nasdaq: STCN
Russell Microcap Index component
IndustrySupply chain management
Founded1968; 56 years ago (1968)
HeadquartersSmyrna, Tennessee
Key people
Warren G. Lichtenstein (Interim Chief Executive Officer and Executive Chairman)
RevenueIncrease $819 million (2019)
Decrease -$66 million (2019)
Total assetsDecrease $731 million (2019)
Total equityDecrease $52 million (2019)
Number of employees
1,358 (2019)
Websitewww.steelconnectinc.com
Footnotes / references
[1]

Steel Connect, Inc. is an American company that provides supply chain management services to software companies.

The company was formerly known as College Marketing Group, CMG Information Systems, and ModusLink Global Solutions, Inc.

History

The company was formed in 1968 as College Marketing Group by Glenn and Gail Mathews. At first, the company sold mailing lists of university faculty to textbook publishers.[2] In 1986, after a leveraged buyout, David Wetherell became CEO,[citation needed] and the company became known as CMGI, Inc.[2]

In February 1994, the company became a public company via an initial public offering. That same month, Wetherell founded BookLink, in which the company invested $900,000. BookLink was sold to America Online in November 1994, and the company used the proceeds of the sale to set up CMG @Ventures, a venture capital firm that invested in internet companies.[3]

The company invested $1 million for an 80% ownership interest in Lycos, which was its most profitable investment. In 1997, the company invested in Geocities and it also formed Navisite.[4][5] In June 1999, the company agreed to acquire an 83% stake in AltaVista from Compaq for $2.3 billion.[6] In September 1999, the company acquired AdForce, founded by Chad Steelberg, for $500 million.[7] In November 1999, Altavista acquired RagingBull.com after Wetherell noticed the website while on vacation.[8] During the dot-com bubble, the company, which was then known as CMGI, Inc., had a market capitalization of $41 billion and owned the naming rights to the new home stadium of the New England Patriots. Between 1995 and 1999, it had the best-performing stock in the United States, returning 4,921%. After the crash of the bubble, the stock price fell 99%.

In March 2000, the company acquired Yesmail.[9] In April 2000, the company acquired uBid.[10] In May 2000, the company acquired Tallan, Inc. for $920M.[11] In August 2000, the company agreed to pay $7.6 million per year for 15 years for the naming rights of the home stadium of the New England Patriots.[12] In August 2002, after the bursting of the dot-com bubble, the company modified the agreement and the stadium name was changed to Gillette Stadium.[13] In 2000, the company recorded a $661 million gain when Yahoo! acquired its interest in GeoCities. By that time, its stock price had declined 78% from its high earlier in the year.[14] In February 2004, the company acquired Modus Media.[15] In September 2008, the company changed its name to ModusLink Global Solutions, Inc.[16] In December 2017, the company acquired IWCO Direct for $476 million in cash.[17] In February 2018, the company changed its name to Steel Connect, Inc.[18] In May 2023, Steel Partners acquired majority control of the company and infused $200 million of cash into the company.[19]

References

  1. ^ "Steel Connect, Inc. 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b "GLENN MATTHEWS Obituary (1937 - 2013) - Wilmot, NH - Boston Globe". Legacy.com. Retrieved 2023-04-18.
  3. ^ "CMGI Can Defy Gravity Only So Long". The New York Times. December 10, 2000.
  4. ^ Simons, David (May 31, 2001). "Making Sense Of CMGI". Forbes.
  5. ^ "CMGI cuts ties with past, sells NaviSite". The Register. September 12, 2002.
  6. ^ "CMGI inks AltaVista deal". CNN. August 5, 2002.
  7. ^ "CMGI acquires AdForce". CNN. September 20, 1999.
  8. ^ "CMGI's AltaVista acquires Raging Bull". American City Business Journals. November 29, 1999.
  9. ^ "CMGI completes acquisition of yesmail.com". American City Business Journals. March 13, 2000.
  10. ^ "CMGI Agrees to Buy uBid In $407 Million Stock Deal". The Wall Street Journal. February 10, 2000.
  11. ^ "CMGI sets $920M purchase". CNN. February 14, 2000.
  12. ^ Mannes, George (August 25, 2000). "CMGI buys stadium naming rights". ABC News.
  13. ^ "CMGI Field is now Gillette Stadium". CNN. August 5, 2002.
  14. ^ "CMGI beats estimates". CNN. September 21, 2000.
  15. ^ "CMGI completes Modus acquisition". American City Business Journals. August 2, 2004.
  16. ^ McIntyre, Douglas A. (September 30, 2008). "ModusLink Replaces CMGI (MLNK, CMGI)". 247wallst.com.
  17. ^ "ModusLink Announces Acquisition of IWCO Direct for $476 Million in Cash" (Press release). PR Newswire. December 18, 2017.
  18. ^ "ModusLink Global Solutions, Inc. to Change Name to Steel Connect, Inc" (Press release). PR Newswire. February 26, 2018.
  19. ^ "STEEL PARTNERS AND STEEL CONNECT CLOSE EXCHANGE TRANSACTION" (Press release). May 2, 2023 – via Gale.
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