Pitney Bowes acquires Danka Canada
Pitney Bowes Inc., one of the world’s largest makers of postal equipment, on Friday said it acquired all the outstanding stock of Danka Canada Inc. for about $14 million.
Danka Canada’s parent, Danka Business Systems PLC, said separately that it sold the unit because it has not been profitable, posting a loss of $7.7 million on $35.9 million in sales for the latest fiscal year ended March 31.
“This transaction is an example of the progress we are making on our strategy of exiting markets where we have not achieved sufficient scale,” Danka Business Chief Executive Todd Mavis said in a statement. “While we have worked hard and made progress in certain areas of the Canadian business, we have not been able to reach profitability and we feel our efforts and resources are best directed to our core businesses.”
The purchase price is subject to a 10 percent holdback for up to one year for potential contingencies related to the transaction, Danka Business said, adding that it plans to use the proceeds for working capital.
Danka Canada, which has about 300 employees in 20 offices nationwide, will be folded into Pitney Bowes’ Canadian operations, but the company did not say if the acquisition would impact its earnings.
