Pitney Bowes Management Services to Grow with Pitney Bowes
Decision Follows Review of Alternatives
STAMFORD, Conn., June 27, 2008 - Pitney Bowes Inc. (NYSE:PBI) announced today that it has concluded its review of strategic options for its U.S.-based Management Services business, and that the company will continue to grow this nearly $1 billion operation as part of Pitney Bowes.
The review, which was announced last November, covered several alternatives designed to maximize the value of the Management Services business to Pitney Bowes shareholders. These included a sale of the business, a spin-off of the business to shareholders, or retaining the business as part of the company. Detailed analysis of each alternative led to the conclusion that growing the business as part of Pitney Bowes maximizes its value for the company’s shareholders.
President and CEO Murray Martin commented: “It is both a prudent and a healthy exercise to review parts of our business portfolio from time to time to ensure we are on the right course for our shareholders. While this review was more public than our typical analysis, the final decision reflects our best thinking based on what we heard from customers, employees, shareholders and the marketplace. I am confident this is the right decision for Pitney Bowes.”
Pitney Bowes Management Services provides on-site and off-site mail, print and document management solutions to Fortune 1000, Am Law 200 and government agencies across the United States. It has more than 12,000 employees working at company and customer sites.
Martin said the review process has helped crystallize three very clear opportunities to drive growth and enhanced profitability at PBMS. The first is to continue to aggressively deploy new solutions such as Critical Communications Solutions, Litigation and Document Services, and Document Processing Solutions, all of which have experienced great success with customers. The second is to bring greater technology to PBMS’s traditional mail and print management services. The third is to drive further integration of end-to-end solutions that incorporate more of the full suite of Pitney Bowes capabilities across all its businesses.
Martin noted that during the ongoing review process, numerous major Management Services customers renewed or increased their contracts with the company, which he said was a sign of confidence that Management Services will continue to deliver on its promise for high-value outsourced services.
About Pitney Bowes
Pitney Bowes is a mailstream technology company that helps organizations manage the flow of information, mail, documents and packages. Our 36,000 employees deliver technology, service and innovation to more than two million customers worldwide. The company was founded in 1920 and annual revenues now total $6.3 billion. More information is available at www.pb.com.