STAMFORD, Conn.--(BUSINESS WIRE)--Apr. 30, 2018--
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.
Forward-Looking Statements
This press release contains statements that are forward-looking
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the Securities Act) and Section 21E of the Securities Exchange
Act of 1934, as amended.These forward-looking statements,
including statements concerning the consummation of the transactions
contemplated by the Stock Purchase Agreement between Pitney Bowes and
Platinum Equity and the costs associated with the sale of Document
Messaging Technologies, are based on current expectations and
assumptions that are subject to risks and uncertainties and actual
results could differ materially.Words such as “estimate,”
“believe,” “expect,” “anticipate,” “intend,” and similar expressions may
identify such forward-looking statements.We undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180430005700/en/
Source: Pitney Bowes Inc.
Pitney Bowes
Bill Hughes, 203-351-6785
Media Relations
William.Hughes@pb.com
or
Adam
David, 203-351-7175
Investor Relations
Adam.david@pb.com
or
Platinum
Equity
Dan Whelan, 310-282-9202
dwhelan@platinumequity.com
