Report: Pitney Bowes in possible buyout talks
Published 12:05 pm, Friday, January 12, 2018
STAMFORD — Embattled technology firm Pitney Bowes has launched discussions with buyout firms including Blackstone Group and Carlyle Group, according to a report this week by Bloomberg.
Pitney held preliminary talks last month with those parties, and CEO Marc Lautenbach is open to an outright sale or breakup of the company, the report said.
Company officials declined to comment Friday on the report.
In the third quarter of last year, Pitney recorded flat revenues, of about $843 million, and saw its profits drop 12 percent, to $57 million, from the same period last year.
“Our third-quarter revenue performance was largely in-line with our expectations,” Marc Lautenbach, Pitney’s president and CEO, said when the third-quarter earnings were announced. “However, our bottom-line results fell short as we continued to realign our businesses to higher growth areas and invest in new business opportunities, products and solutions.”
Lautenbach and other executives have largely attributed the decline in earnings in recent quarters to the impact of organizational changes. In 2016 Pitney transitioned in the U.S. to a new enterprise-business platform — a move that disrupted short-term business, but one they have said would significantly improve the company’s long-term operations.
Also in 2016, Pitney also launched its Commerce Cloud system, which serves about 1 million small and medium businesses and 90 percent of Fortune 500 companies.
In its most significant deal of the past quarter, Pitney acquired for about $475 million Austin, Texas-based Newgistics, which specializes in parcel logistics, from Greenwich-based investment firm Littlejohn & Co.