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Massachusetts company buys PTS Electronics(Herald-Times (Bloomington, IN) (KRT) Via Acquire Media NewsEdge) May 9--Bloomington-based PTS Electronics has been acquired by supply chain manager, CMGI Inc., for $45 million. But the buyout doesn't mean any big change for the Bloomington-based manufacturer of wireless and cellular phone products that remanufactures HDTV main boards and tuners. The acquisition makes PTS a wholly owned subsidiary of CMGI. Founded in Bloomington as a spin-off of RCA in the 1960s, PTS now employs more than 400 people locally out of its total workforce of about 500. President and co-owner Jeff Hamilton said that even though ownership of the company has changed, employees have little reason to worry about the future of their jobs. "We're committed to Bloomington, we always have been," he said. "We were looking for a strategic partner to help us stay in Bloomington." Hamilton said sale of the company was necessary because PTS was looking to expand its operations but didn't have the ability. "Our operation requires large resources to explore strategic opportunities and we're delighted to be working with CMGI, it's great for Bloomington employees," he said. At the moment it seems not much will change for PTS's employees in Bloomington and both companies say they won't be cutting or changing staff. "CMGI intends to keep the company operating as it has been with the same team on board, said Farrah Phillipo, public relations and communication manager for CMGI. "Really, nothing's going to change for the people working at PTS now," CMGI did not purchase the property that the main PTS site is on as part of the deal, but instead opted to sign a five-year lease. But Hamilton said this isn't a sign that the company will move out of Bloomington because he and his partner Jack Craig are the owners of the property. "We're not going anywhere," he said. "If anything, we plan on adding people," he said. "We've added 50 people over the last 90 days and we plan to continue. CMGI has been wonderful to work with." CMGI, based in Waltham, Mass., operates several subsidiary companies including Modus-Link, which offers technology supply management. Phillipo said CMGI looked to acquire PTS because of the company's desire to augment its ability to offer repairs and aftermarket services to Modus-Link customers. "The company was looking at different acquisitions and needed to expand its aftermarket abilities. PTS is a leader in those services and a logical choice," she said. "PTS now has the benefit of being part of a global company and has the ability to expand as well." Hamilton also sees a chance for continued expansion in the future. PTS generated $37.5 million in revenue last year but CMGI doesn't expect its new subsidiary to affect earnings positively until fiscal 2009. To see more of the Herald-Times, or to subscribe to the newspaper, go to http://www.heraldtimesonline.com. Copyright (c) 2008, Herald-Times, Bloomington, Ind. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |