Pitney Bowes Inc. (NYSE:PBI) Acquires Cleveland, Ohio-Based Presort Services Firm

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Stamford, Connecticut-based global technology firm Pitney Bowes Inc. (NYSE:PBI) has revealed that it has acquired Miller’s Presort, a presort services company. This now extends the national network of Pitney Bowes to over 35 operating centers in the United States.

The acquisition will allow Pitney Bowes to assist high-volume mailers who include mail service providers, healthcare organizations, insurers and financial services firms to manage the complex sector regulations as well as optimize postage spend in the Cleveland area.

Presort Services network

“We are delighted to expand our Presort Services network into Cleveland. Our new operating center will allow us to deliver mail and parcel services to a number of new clients and expand relationships with existing clients,” Pitney Bowes Presort Services’ president, Debbie Pfeiffer, said.

Use of Pitney Bowes Presort Services enables high-volume mailers to achieve operational cost savings, faster in-home delivery that is more predictable and reduced postage costs. High-volume mailers are also assured of the highest sector standards being met as well as visibility, control and security throughout the mailstream.

Strategic alternatives

The acquisition of Miller’s Presort by Pitney Bowes comes a couple of weeks following the announcement by the global technology firm that it was eyeing strategic alternatives of the face of growth struggles due to declining mail volume.

In its third quarter earnings report Pitney Bowes recorded a fall in income missing the expectations of analysts. The quarter saw net income fall to a figure of $57.4 million from a figure of $65.5 million recorded last year. While analysts were expected adjusted EPS to come in at 42 cents Pitney Bowes reported a figure of 33 cents per share.

Cutting costs

The Stamford, Connecticut-based global technology firm also revealed that it would reduce spending to the tune of $200 million in the course of the next two years. In Q3 costs rose to $767.9 million compared to a figure of $745.4 million during the same period last year.

Revenue however rose slightly to $842.8 million compared to a figure of $839 million reported in 2016.

In Tuesday’s trading session shares of Pitney Bowes rose by 1.14% to close the day’s trading session at $10.16 per share.

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