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CMGI Sheds Engage, Navisite
Months after acquiring SCM vendor Software Logistics Corporation, online investment firm CMGI announced the divestment this week of two of its largest properties – Navisite and Engage.
Navisite, a managed hosting company, had been acquired by Clear Blue Technologies, Inc., a manager of a telcom carrier-neutral data centers. In the transaction, CMGI received a minority interest in ClearBlue.
In the Engage sale, a sort of management buyout, CMGI transferred to Engage all of the company's shares held by CMGI (about 75% of the total outstanding), and has cancelled all of the debt owed by Engage to CMGI. In turn, Engage, among other things, paid CMGI $2.5 million in cash, agreed to pay CMGI up to an additional $6 million in the form of a senior note, committed to certain earnout payments, and the company issued warrants to CMGI for CMGI's prospective future purchase of up to 9.9% of Engage's common stock at an exercise price of $4.8 cents per share.
These transactions represent CMGI's continuing campaign of selling currrent IT assets while seeking new IT industry investment opportunities.
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