Pitney Bowes Inc. signed an agreement to acquire 100 percent of the stock of PSI Group Inc., the nation's largest mail presort company, for $130 million.
Subject to the completion of certain conditions, the transaction is expected to close in third-quarter 2002.
PSI prepares, sorts and aggregates mail to earn postal discounts and expedite delivery for its customers. The company will become a wholly owned subsidiary of Pitney Bowes, continuing to operate under its current management and focusing solely on providing presort mail services.
PSI employs 900 people in its 12 operating centers nationwide and its headquarters in Omaha, NE.
Currently, Pitney Bowes, Stamford, CT, works with various mailing companies around the country for different parts of its business, but this is the first time it will own a presort entity.
Murray Martin, president, global mailing systems at Pitney Bowes, said PSI "does not have locations that cover all or close to all of our customers, and we will definitely be continuing relationships with presort companies across the United States."
Martin also said that under the agreement, even if Pitney Bowes is working in an area where PSI has operations, it can work with other presort houses. PSI is also free to work with other mailing services companies.