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Pitney Bowes sells DMT mail business for $361m

Wednesday, 02 May 2018
By Print21

(Image: Pitney Bowes DMT video)

US private equity firm Platinum Equity has signed a $US361 million agreement to buy Pitney Bowes’ Document Messaging Technologies (DMT) production mail business and supporting software.

‘A broad range of advanced inserting, sorting and print solutions’: Adam Cooper, Platinum Equity.

“DMT is a leader in its market with all the tools it needs to thrive as a standalone business,” said Platinum Equity principal Adam Cooper. “It has a broad range of advanced inserting, sorting and print solutions and a committed global workforce that delivers world-class client satisfaction.

“We look forward to partnering with the management team to drive operational excellence and invest in growth, both organically and through prospective strategic acquisitions.”

Included in the deal – which is subject to certain adjustments – 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.

Pitney Bowes CEO Marc Lautenbach says the company initiated a review of strategic alternatives in November 2017 to create long-term shareholder value.

‘The best opportunity for long-term growth’: Pitney Bowes CEO Marc Lautenbach.

“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,” said Lautenbach. “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.”

The move, which continues an industry-wide transition to digital, is expected to provide opportunities for competitors in the Australia and New Zealand markets. 

Pitney Bowes – a global technology company that provides solutions in the areas of shipping and mailing, data, and ecommerce – 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 US quarter, subject to closing conditions.

Platinum Equity – which is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund – last month agreed to sell office supplier Winc New Zealand – formerly Staples – in order to push ahead with its plan to acquire OfficeMax in Australia and New Zealand from Office Depot.

 

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