Pitney Bowes Jumps After Deal to Sell Unit for $400 MillionSarah Frier
Pitney Bowes Inc., a provider of postal meters and other equipment, rose the most in six months after agreeing to sell its management-services unit to Apollo Global Management LLC for about $400 million in cash.
The transaction is expected to close in the fourth quarter, the Stamford, Connecticut-based company said today in a statement.
The management-services division works with clients such as McDonald’s Corp. and the state of Indiana to boost efficiency. Selling the unit will let Pitney Bowes focus on mail products and services and digital-commerce offerings, the company said. It’s part of a series of strategic moves to realign the business, according to Chief Financial Officer Michael Monahan.
“We’re going to continue going through the portfolio as a whole and make decisions as we see fit,” he said in an interview today. “The value of the management-services business could be best realized by being in a standalone space.”
Pitney Bowes shares rose 13 percent to $16.60 at the close in New York, marking the biggest gain since Jan. 31. The stock has climbed 56 percent this year.