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IWCO Direct Sign in Chanhassen – IWCO Direct

The Benefits of Our Acquisition by ModusLink Global Solutions

Jim Andersen

Earlier today it was announced that we have joined the Steel Partners’ portfolio of companies through the acquisition of IWCO Direct by ModusLink Global Solutions, Inc. This acquisition has important benefits to our employees and clients, and we wanted to take a moment out of what has been a very busy week to explain what this deal means and the fruit we expect it to bear.

First and foremost, on a day-to-day basis it will have minimal effect on employees, clients, and existing marketing programs. IWCO Direct will operate as a wholly-owned subsidiary of ModusLink and our exisiting management team, account teams, and the way we manage client relationships will go forward as is.

Looking longer term we expect this deal to bring about significant and positive changes. This is an exciting time in our industry as companies take advantage of the opportunities presented by the fusion of data and sophisticated production technology. I echo the thoughts of Mark Michelson, editor-in-chief of Printing Impressions, who had this to say about the outlook of the direct mail space in the December issue:

“Almost across the board, firms listed on the 2017 PI 400 that specialize in highly targeted digital direct mail printing posted solid gains. The reason: data-driven and personalized direct mail – often implemented as part of a bigger, omnichannel marketing campaign – generates high recipient response rates and breaks through the electronic clutter.”

Once again, we are the largest direct mail printer in North America in the annual Printing Impressions report, but we aren’t satisfied. We believe today’s announcement will accelerate our ability to make strategic acquisitions that expand our data and agency services, with significant investments in technology, equipment, automation, and people. This will be supported in part by the advantageous tax position of our parent company as they apply prior year’s net operating losses (NOLs) to reduce future tax liabilities, freeing cash to direct towards these investments.

Of course, this won’t happen overnight. But today’s deal positions IWCO Direct and our clients’ marketing programs extremely well for 2018 and beyond.

link https://www.iwco.com/blog/2017/12/18/moduslink-acquires-iwco-direct/
Jim Andersen


Jim Andersen

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