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transcosmos inc. Enters Into A Strategic And Equity Partnership With A Major US End-To-End eCommerce Outsourcing Provider, PFSweb

Partnership With PFSweb Will Enhance transcosmos’ eCommerce Outsourcing Business In The US And The EU, Accelerating Global Expansion

May 16, 2013

transcosmos inc.

transcosmos inc. (Headquarters: Tokyo, Japan; President and COO: Masataka Okuda; TSE First Section: 9715; hereafter, transcosmos) has agreed to enter into a strategic and equity partnership in eCommerce outsourcing with PFSweb, Inc. (Headquarters: Texas, USA; CEO: Mike Willoughby, NASDAQ: PFSW, hereinafter, PFSweb), a leading US end-to-end eCommerce outsourcing services provider. In conjunction with the agreement, transcosmos will acquire 3,214,369 shares of PFSweb common stock, equivalent to 19.99% of shares outstanding post transaction at a price of $4.57 per share. transcosmos will account for its investment in PFSweb through the equity method. Through this alliance, transcosmos is launching a full-scale entry into eCommerce outsourcing in the US and the EU, in order to provide eCommerce business support for Japanese companies, as well as to support PFSweb’s clients for their eCommerce expansion in the Japanese market. To promote this alliance, a transcosmos representative will join PFSweb’s Board of Directors.

PFSweb is an eCommerce outsourcing company which has operational hubs in the US, Canada, the EU (Belgium) and the Philippines. The company provides end-to-end eCommerce solutions which include fulfillment services, call center and customer care support, online payment transactions and interactive marketing, as well as system integration with global standardized eCommerce platforms and order management systems.

All the areas PFSweb operates including fulfillment centers/distribution centers in the US, Canada, Belgium are approximately 193k square meters, which would be approximately 4.1 times as big as the Tokyo Dome.

transcosmos has been providing analytics and research, interactive marketing, eCommerce website development and call center solutions as part of its global eCommerce expansion service, supporting clients who are expanding their eCommerce operations in the Asian markets, including China and South Korea. Through this strategic and equity partnership, transcosmos will now be able to offer global eCommerce outsourcing services in the US and the EU, expanding its capabilities to a total of 10 different languages* including Japanese, Chinese and Korean. In addition, PFSweb operates 6 fulfillment centers, which provide receiving/picking/shipping/return and gift wrapping, and will enable transcosmos to provide fulfillment services to clients as an end-to-end provider with a one-stop solution.
*Japanese, Chinese, Korean, English, French, German, Italian, Spanish, Portuguese, Dutch.

Masataka Okuda, President and COO of transcosmos, said:
“I am delighted that we found a strong partner for our US and EU expansion in PFSweb. This partnership will bring real benefits to our clients in Japan, China, Korea and internationally, and also for leading US and EU brands who want to enter the Japanese, Chinese and Korean eCommerce market.
PFSweb provides a unique set of solutions for clients in both eCommerce technology, operational efficiencies, improved customer experiences and lowering of costs, and we will make sure that all our customers benefit from the global footprint and this set of capabilities, which matches transcosmos’ own unique expertise.

“I am very pleased to be entering into this strategic relationship with transcosmos as we seek together to create a unique global end-to-end multi-channel eCommerce solution for PFSweb and transcosmos clients,” said Mike Willoughby, CEO of PFSweb. “Through this relationship, PFSweb will be able to leverage its iCommerce omni-channel commerce solution to immediately seek to enable selected current transcosmos clients to launch their brands in North America and Europe. We will also look to combine our iCommerce solution with transcosmos’ Asian market capabilities, including best-of-breed strategy and analytics, interactive marketing services, eCommerce web site development and customer care services to enable current and prospective PFSweb clients to efficiently and effectively move into these valuable Asian markets.”

PFSweb Overview:

Company name:
Mike Willoughby
505 Millennium Drive, Allen, TX 75013
No. of Employees:
Approximately 1,300
Total Revenue:
$281.6M (Dec. 2012)
10 (North America 7, EU 2, Asia 1)
End-to-End eCommerce outsourcing services, including fulfillment, customer support, eCommerce systems integration/development, interactive marketing.
English, French, German, Italian, Spanish, Portuguese, Dutch.


PFSweb Fulfillment Center

PFSweb Fulfillment Center

PFSweb Call Center

PFSweb Call Center

It is expected that the global eCommerce market will reach $1.3 trillion this year and is expected to grow at a high average annual growth rate of 15.6% from 2012 through 2016 (source: eMarketer “Ecommerce Sales Topped $1 Trillion for First Time in 2012” 2013/02/05). In this fast-growing market, transcosmos is aiming to be the “Global IT Partner” by accelerating its global expansion of end-to-end eCommerce outsourcing services.

Related Services

* transcosmos is a registered trade name or trademark of transcosmos inc. in Japan and other countries.
* Other company names and product or service names mentioned are registered trade names or trademarks of various other companies.

About transcosmos inc.

transcosmos launched operations in 1966. Since then it has combined superior “human resources” with the most up-to-date “technological” capabilities to enhance the competitive strength of its corporate clients by providing them with high value added and superior services. It provides overall IT outsourcing services such as Call Center Services, Business Process Outsourcing Services, and Digital Marketing Services either as standalone solution or as combined services to its corporate clients to optimize their marketing efficiencies, to expand sales and gain new customers in E-Commerce business, and to improve operational efficiency and reduce clients operational cost for back office and information system operations. Further, these services have been expanded beyond Japan, globally, centered in Asia. transcosmos aims to be the “Global IT Partner” of its corporate clients to provide them with high quality outsourcing services on a global scale.

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