Pitney Bowes is continuing its restructuring with the sale of its management services division for $400m.
The US mail technology and services giant said today it has agreed to the sale with investment firm Apollo Global Management LLC.
The sale is expected to close by the end of this year, until which time Pitney Bowes will continue to operate the management services unit.
Marc Lautenbach, President and CEO at Pitney Bowes, said the sale was a “tremendous opportunity” for his company.
“It is part of our continued evolution into a company better aligned to address the needs of clients while focusing on the areas where we can create the greatest value for our clients and our shareholders,” he explained. “Pitney Bowes Management Services, a strong business with an outstanding team and an unparalleled client list, can benefit significantly from operating as a more focused, stand-alone company in partnership with Apollo, a leading global alternative asset manager with a proven track record of success in building and growing businesses in the business services industry.”
Apollo, which has offices in New York, LA, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong, manages $114bn worth of assets.
Matthew Nord, Partner at Apollo, said: “Pitney Bowes Management Services offers an innovative business model supported by a highly talented team of individuals. Their knowledge combined with cost-effective solutions drive business outcomes that help clients achieve their objectives. We are excited to invest in, and grow this great company.”
Flat second quarter
Pitney Bowes announced the sale of its management services division as it recorded latest financial results, for the second quarter of 2013.
The quarter showed underlying revenue flat, or down by less than a point including currency movements, at the same $1.2bn level as last year’s second quarter.
Pitney Bowes saw some positivity with double-digit growth in its Production Mail and Mail Services segments.
International Mailing revenue was flat compared to last year.
However, the growth segments within Pitney Bowes were countered by lower revenue in the company’s Small and Medium-sized Business unit, and in its Software segment.
The quarter’s results were also impacted by a $98m write-down in the valuation of the business.
“Pitney Bowes is making solid progress on its transformative journey to improve the growth profile and profitability of the business,” said Lautenbach.
“We are continuing to invest in the growth areas of our business, while at the same time becoming more efficient, flexible and focused to meet the changing needs of our clients. In addition, we have strengthened our balance sheet by further reducing debt and continue to drive operational excellence that will further enhance client and shareholder value.”
Source: Pitney Bowes