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Platinum Equity to Acquire Pitney Bowes' Global Production Mail Business

Wednesday, May 2, 2018  
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Pitney Bowes Inc. has announced that Platinum Equity has signed a definitive agreement to acquire the company's Document Messaging Technologies (DMT) production mail business and supporting software for $361 million, subject to certain adjustments. The company anticipates proceeds from the sale of approximately $270 million, net of estimated closing costs, transaction fees and taxes. Pitney Bowes 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 quarter subject to customary closing conditions.

Pitney Bowes' DMT production mail business is a global leader in enterprise print, mail and customer communications solutions. Platinum Equity is a global private equity firm with a highly specialized focus on business operations and more than 20 years' experience acquiring and operating businesses that have been part of large corporate entities.

"DMT is a leader in its market with all the tools it needs to thrive as a standalone business," said Adam Cooper, principal, Platinum Equity. "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."

Also included in the transaction 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.

"In November 2017, we initiated a review of strategic alternatives to create long-term shareholder value," said Marc Lautenbach, CEO, Pitney Bowes. "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. As a standalone 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."

Goldman Sachs & Co. LLC is serving as financial advisor to Pitney Bowes and Debevoise & Plimpton LLP is serving as the company's legal advisor. Morgan, Lewis & Bockius LLP is serving as legal advisor to Platinum.

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