Pitney Bowes to acquire DDD
Pitney Bowes Inc., a postage-meter maker and document-management company, has agreed to pay $53.6 million in cash, stock and assumed debt for DDD Co., a privately held Landover mail-processing firm, to provide more services to government clients.
DDD has 1,200 employees who do work for the U.S. Postal Service around the country. Six hundred of its employees work in the Washington area. The company specializes in screening mail for government agencies with security concerns.
After the anthrax scare, for example, DDD workers began screening mail for the House of Representatives and scanning the contents into electronic formats that could be forwarded to the recipient, according to Pitney Bowes.
“Their services are complementary to services that we already provide to governmental agencies,” said Bruce P. Nolop, chief financial officer of Stamford, Conn.-based Pitney Bowes. “We’ve seen very strong interest in these services in particular since September 11th.”
DDD will be renamed Pitney Bowes Governmental Solutions Inc. and operate as a stand-alone division headquartered in Landover, Nolop said.
The deal includes a $49.5 million payment to DDD’s owners, half in Pitney Bowes stock and half in cash, and the assumption of $4.1 million in debt, according to Mark Anderson, director of corporate development for Pitney Bowes.
The management team will remain at the company, Nolop said, and no layoffs are planned. Pitney Bowes expects the deal to close at the end of the month.
