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Brightpoint To Buy Touchstone For $80M

12/13/2010 09:50:41 AM Eastern
Indianapolis - Brightpoint, through its wholly owned indirect subsidiary, Touchstone Acquisition, has entered into an agreement to acquire Touchstone Wireless Repair and Logistics.

Under the terms of the agreement, Brightpoint will pay $80 million in cash at closing to acquire Touchstone.

Touchstone provides repair, re-manufacture and reverse logistics services to the wireless industry and is a privately held company based in Hatfield, Pa. With the Touchstone acquisition, Brightpoint further expands its solutions offering and creates the wireless industry's most efficient supply chain solutions provider, the company said in a statement.

Brightpoint expects to fund the purchase price from its senior revolving credit facility. The proposed acquisition is expected to close by Dec. 31, and is subject to customary closing conditions including, without limitation, the receipt of certain third-party and regulatory approvals.

"By combining Brightpoint's strength in forward logistics with Touchstone's expertise in the repair and reverse logistics arena, we are creating a new class of solutions provider in the wireless industry," said Brightpoint Americas president, J. Mark Howell. "Adding a robust, in-house repair operation with more than 300 trained repair technicians, solidifies and extends Brightpoint's leadership position in the wireless supply-chain solutions arena. This combination enables us to increase our value proposition to our customer base of leading network operators, manufacturers, and retailers by offering true end-to-end supply chain services and provides the expertise and infrastructure for additional services such as wireless device recycling and refurbishment."

"We are proud of our significant accomplishments and reverse logistics innovations within the wireless industry," said Allen Hurley, chairman and co-founder, Touchstone Wireless. "We've set a superior standard for quality, reliability, and customer service for our carrier and manufacturer partners during our decade-long history. The combination of our companies provides Touchstone with access to greater resources, expands our business by utilizing Brightpoint's extensive network of customer and manufacturing partners, and strengthens Brightpoint's product and service portfolio. I see this combination as a tremendous opportunity for Touchstone's nearly 1,800 employees."
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