Platinum Equity has agreed to acquire Pitney Bowes‘ document messaging technologies’ production mail business and supporting software, for $361 million. The deal is expected to close either in the second or early in the third quarter of this year. Goldman Sachs is serving as financial adviser to Pitney Bowes with Debevoise & Plimpton LLP providing legal advice. And, Morgan, Lewis & Bockius LLP is serving as legal adviser to Platinum.
STAMFORD, Conn.–(BUSINESS WIRE)–Pitney Bowes Inc. (NYSE:PBI), a global technology company that provides commerce solutions in the areas of shipping and mailing, data, and ecommerce, today announced that Platinum Equity has signed a definitive agreement to acquire the Company’s Document Messaging Technologies (DMT) production mail business and supporting software for $361 million, subject to certain adjustments. The company anticipates proceeds from the sale of approximately $270 million, net of estimated closing costs, transaction fees and taxes. Pitney Bowes expects to use the majority of the net proceeds from the sale to pay down debt.
The transaction is likely to be completed late in the second or early in the third quarter subject to customary closing conditions.
Pitney Bowes’ Document Messaging Technologies production mail business is a global leader in enterprise print, mail and customer communications solutions. Platinum Equity is a leading global private equity firm with a highly specialized focus on business operations and more than 20 years’ experience acquiring and operating businesses that have been part of large corporate entities.
“DMT is a leader in its market with all the tools it needs to thrive as a standalone business. It has a broad range of advanced inserting, sorting and print solutions and a committed global workforce that delivers world-class client satisfaction,” said Platinum Equity Principal Adam Cooper. “We look forward to partnering with the management team to drive operational excellence and invest in growth, both organically and through prospective strategic acquisitions.”
Also included in the transaction is the enterprise mail, print and data management software business that integrates data with print streams to optimize document output for high-volume production mailers.
“In November 2017, we initiated a review of strategic alternatives to create long-term shareholder value,” said Marc Lautenbach, Chief Executive Officer, Pitney Bowes. “Our decision to sell our Document Messaging Technology business is the result of a thorough evaluation of the best opportunity for long-term growth for both DMT and Pitney Bowes. As a stand-alone business, DMT will have greater flexibility and opportunity to build on its industry-leading portfolio, create greater market opportunity and deliver new client value. For Pitney Bowes, this transaction supports our move to higher growth markets and aligns with our strategic intent to do in the shipping market what we’ve done in mailing for almost 100 years – enabling global commerce by taking out the complexity and enhancing the value for clients.”
Goldman Sachs & Co. LLC is serving as financial advisor to Pitney Bowes and Debevoise & Plimpton LLP is serving as the Company’s legal advisor. Morgan, Lewis & Bockius LLP is serving as legal advisor to Platinum.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 200 acquisitions.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; global ecommerce; office mailing and shipping; presort services; location data; and software. For nearly 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right. For additional information visit Pitney Bowes, the Craftsmen of Commerce, at www.pitneybowes.com.