Pitney Bowes Inc.
) announced its plan to sell the management services business
wing in the United Kingdom and Republic of Ireland to Swiss Post
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
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 Bowes currently has a Zacks Rank #4 (Sell). However,
some other companies that can be considered at the moment are
Progressive Software Corp
), which has a Zacks Rank #1 (Strong Buy), and
Advent Software (
Adobe Systems Inc
) having Zacks Rank #2 (Buy) each.
ADOBE SYSTEMS (ADBE): Free Stock Analysis
ADVENT SOFTWARE (ADVS): Free Stock Analysis
PITNEY BOWES IN (PBI): Free Stock Analysis
PROGRESS SOFTWA (PRGS): Free Stock Analysis
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