Pitney Bowes Moves to Spin Off Capital Services Business

Share this content:
The board of directors of Pitney Bowes Inc., Stamford, CT, approved a plan yesterday to pursue a sponsored spinoff of its Capital Services external financing business.


Pitney Bowes Capital Services, Shelton, CT, provides custom-tailored external commercial financing solutions for companies of all sizes. With assets exceeding $2 billion, Capital Services has offered financing, leasing and advisory services in three areas: capital equipment; vendor financing; and commercial real estate through its PREFCO business unit.


The new entity would be an independent, publicly traded company including most of the assets in the Capital Services segment, including assets related to Imagistics International Inc., Trumbull, CT, a direct sales and service organization that provides document messaging, production and output solutions. It was spun off from Pitney Bowes in 2000. The company has entered into negotiations with an unnamed party interested in investing in the new entity.


The decision to proceed with the spinoff will be contingent upon agreeing on terms with an investor, prevailing market conditions at the time of the proposed spinoff, regulatory review and the receipt of a favorable ruling from the Internal Revenue Service that the spinoff would be tax free.


"In January 2003, we announced our decision to stop active origination of long-term external financing transactions and to liquidate our $2 billion-plus portfolio over time," said Michael J. Critelli, chairman/CEO of Pitney Bowes. "Our objective was to reduce the risks associated with complex, long-term financing transactions, enhance our financial flexibility and sharpen our focus on our core businesses. In looking at our options for maximizing the value of both Pitney Bowes and Capital Services, we decided that both entities had the potential to benefit from a sponsored spinoff under the right conditions."


Loading links....
close

Next Article in Postal

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here