CT Cellutions Agrees to Merger
ALPHARETTA, Ga., May 22, 2018 (Newswire.com) - CT Cellutions (CTC), a leader in the aftermarket supply chain management for mobile devices, announced today that it has reached a non-binding agreement in principle with Mobile Capital Management Inc. (MCM), a global force in the sale and redistribution of new and used devices, to merge the two companies.
The objective of the contemplated merger is to expand distribution channels to maximize the value of returned assets. The company will operate under the name Asset Cellutions. CT Cellutions and Mobile Capital Management Inc. anticipate closing the transaction in June of 2018.
CT Cellutions' Charles Taylor will become CEO of the combined company and Sandy Schwartz, principal of MCM, will become president.
"This is a great merger. When you combine our software-driven solutions and pair it with MCM's ability to move many types of products across a lot of different verticals, the sky is the limit," said Taylor.
The merger will create a $70 million-grossing company that is better positioned to maximize profits by increasing efficiencies, better focusing capital investments, expanding supply chain opportunities and creating greater value for our industry partners.
"I am most excited for our clients. I am also beyond excited to get to work with the amazing CT Cellutions team. Still, it's our clients I am most excited for. Combining CTC's best-in-class software solutions and the dynamic sales channels of MCM, we will be able to bring unparalleled value to our vendor partners and best-in-class products to our customers," explained Schwartz.
Post-merger, the new company will be managed at the highest level by the newly appointed board. Robb HIcks will serve as chairman. The CEO and president will control day-to-day management.
"I share in Charles' and Sandy's enthusiasm about this pending merger," said Hicks. "It's not often you can find two incredibly sound companies whose operations fit together so seamlessly. I think that's why we are all so excited. We know together we will create tremendous value for both our industry partners and our investors."
Reverse logistics is an important strategic operational tool; this is particularly important for short-life-cycle industries like the mobile devices industry. As reported in the Wall Street Journal, companies now spend an average of eight to 10 percent of revenue maintaining reverse supply-chain functions. According to the Radacati Group, the number of mobile devices in use, including both phones and tablets, will grow from 7.7 billion in 2014 to over 12.1 billion by the end of 2018. Some of that growth is due to expanding global markets, but much is also due to consumer demand for the latest devices in the U.S. According to the U.S. Environmental Protection Agency (EPA), mobile phones are usually replaced every 18 months. In an industry where regulations are ever-evolving as environmental, health, privacy and ethical concerns evolve, disposing of "retired" or "unwanted" assets is no small task.
About the Companies
CT Cellutions (CTC), an R2, ISO certified company, works in conjunction with supply chain, carrier and logistic partners to provide value-enhanced services to its customers. CTC is well-known throughout the telecom industry for its work and years of experience. CTC continues to provide solutions for handset homologation, software, resale channels of EOL and obsolete inventory, OEM sales and responsible recycling.
Mobile Capital Management (MCM)
MCM manages transactions between buyers and sellers that require escrow or materials validation. MCM specializes in the purchase and processing of devices. MCM can process to R2 Standards and manage the asset to the customer's criteria. MCM has the ability to move products across many verticals. Fortune 1000 customers, MDM companies, carrier BSPs are just a few of MCM's unique distribution channels. It has long prided itself on being able to extract the maximum amount of value out of not only the latest and greatest devices but devices deemed obsolete by industry standards.
Source: CT Cellutions Inc.