PBI announced they will be selling its managed services division to Apollo Global Management, LLC for about 400 Million dollars. The deal is expected to close in the fourth quarter.
For the last 15 years many mid to large companies have outsourced their mail and document services to Facilities Management (FM) companies to concentrate on their core competencies.
So what will this mean to the very competitive FM marketplace that frankly has very few competitors with national coverage? Currently, virtually all of the (non PB) FM players shun PB mailing equipment and services since they are direct competitors. Neopost and Hasler are the main beneficiaries of these relationships since they are the other large provider.
Will the new Apollo FM operation open up and allow their analysts freedom to choose the best qualified product value for the application or will the blinded loyalty to the PB brand continue? If the former is adopted how will Ricoh, Oce and others respond? Will they consider offering "that which shall not be named"? This should be interesting to follow.
Details reported by the WSJ, 7/30/13: For its part, Pitney Bowes plans to focus on its mail and digital-commerce businesses. The company has been consolidating its business to reduce costs.
Pitney Bowes also reported that it swung to second-quarter loss of $4.6 million, or five cents a share, compared with year-earlier earnings of $104.2 million, or 50 cents a share. Excluding restructuring charges, write-downs and other items, adjusted earnings from continuing operations were up at 52 cents from 51 cents.
Revenue eased 0.7% to $1.16 billion as double-digit growth in its production mail and mail services mostly offset weakness in other areas.
Analysts polled by Thomson Reuters recently expected per-share earnings of 43 cents on revenue of $1.19 billion.
Pitney Bowes shares were up 1.8% at $14.99 in recent premarket trading. Apollo shares closed Monday at $26.60 and were inactive premarket.
For the last 15 years many mid to large companies have outsourced their mail and document services to Facilities Management (FM) companies to concentrate on their core competencies.
So what will this mean to the very competitive FM marketplace that frankly has very few competitors with national coverage? Currently, virtually all of the (non PB) FM players shun PB mailing equipment and services since they are direct competitors. Neopost and Hasler are the main beneficiaries of these relationships since they are the other large provider.
Will the new Apollo FM operation open up and allow their analysts freedom to choose the best qualified product value for the application or will the blinded loyalty to the PB brand continue? If the former is adopted how will Ricoh, Oce and others respond? Will they consider offering "that which shall not be named"? This should be interesting to follow.
Details reported by the WSJ, 7/30/13: For its part, Pitney Bowes plans to focus on its mail and digital-commerce businesses. The company has been consolidating its business to reduce costs.
Pitney Bowes also reported that it swung to second-quarter loss of $4.6 million, or five cents a share, compared with year-earlier earnings of $104.2 million, or 50 cents a share. Excluding restructuring charges, write-downs and other items, adjusted earnings from continuing operations were up at 52 cents from 51 cents.
Revenue eased 0.7% to $1.16 billion as double-digit growth in its production mail and mail services mostly offset weakness in other areas.
Analysts polled by Thomson Reuters recently expected per-share earnings of 43 cents on revenue of $1.19 billion.
Pitney Bowes shares were up 1.8% at $14.99 in recent premarket trading. Apollo shares closed Monday at $26.60 and were inactive premarket.
