Pitney to Divest Management Biz - Analyst Blog
May 17 2013 - 12:50PM
Zacks
Recently Pitney Bowes Inc. (PBI) announced its
plan to sell the management services business wing in the United
Kingdom and Republic of Ireland to Swiss Post Solutions.
Swiss Post Solutions is a division of Swiss Post that offers a
comprehensive range of business process management services.
Pitney’s two regional subsidiaries, namely Pitney Bowes Limited
and Pitney Bowes Ireland Limited, inked an agreement for an
undisclosed amount with Swiss Post for this purpose. Although the
detailed terms of the contract are yet to be revealed, the company
has clarified that this transaction will not cover Marketing
Lifecycle Services (MLS), which will continue to be operated by
Pitney itself. The transaction is expected to be complete within
three months of the announcement.
After a thoughtful consideration, the management at Pitney found
the held-for-sale business segment failing to complement its
existing line of businesses. In addition, the management services
business in the UK and Republic of Ireland was expected to perform
more efficiently and effectively as part of Swiss Post
Solutions. This is primarily due to the fact that the
European market is the primary focus and core business area for
Swiss Post Solutions, unlike that of Pitney. This acquisition will
strengthen the international market presence of Swiss Post
Solutions.
As per the terms of the agreement employees and consultants, who
are currently working under the payroll of Pitney Bowes Management
Services (PBMS) will be transferred to the payroll of Swiss Post
Solutions along with a number of PBMS facilities. Swiss Post
Solutions will also takeover a list of blue-chip clients based in
the UK and the Republic of Ireland from Pitney.
Pitney Bowes currently has a Zacks Rank #4 (Sell). However, some
other companies that can be considered at the moment are
Progressive Software Corp. (PRGS), which has a
Zacks Rank #1 (Strong Buy), and Advent Software
(ADVS) and Adobe Systems Inc. (ADBE)
having Zacks Rank #2 (Buy) each.
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
ADVENT SOFTWARE (ADVS): Free Stock Analysis Report
PITNEY BOWES IN (PBI): Free Stock Analysis Report
PROGRESS SOFTWA (PRGS): Free Stock Analysis Report
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