Pitney Bowes Acquires DDD Company

Aug. 28, 2003
Pitney Bowes Strengthens Leadership Position in the Government Outsourcing Industry

Stamford, CT-based Pitney Bowes Inc. (NYSE:PBI), the leading provider of integrated mail and document management solutions, has entered into a definitive agreement to acquire DDD Company for a net purchase price of $49.5 million. DDD, headquartered in Landover, MD, offers a comprehensive array of services including, fulfillment services, secure mail processing, messenger services, logistics support, and record and information management.  DDD will operate as Pitney Bowes Government Solutions, Inc., a stand-alone business reporting directly to Karen M. Garrison, executive vice president and group president, Pitney Bowes Management Services, Inc., Stamford, CT.

“This transaction is another step in our plan to enhance shareholder value and grow our 2% share in the $250 billion global mail and document market. Our goal is to expand our document management capabilities and customer base while strategically diversifying the vertical markets we serve. The government sector is particularly important to us, and DDD brings considerable expertise and experience in that arena,” says Michael J. Critelli, chairman and CEO, Pitney Bowes, Stamford, CT.

In the fall of 2001, following the events surrounding 9/11 and the subsequent anthrax attacks, Pitney Bowes responded to the increased security needs of federal agencies and began offering its portfolio of secure mail, imaging, and document management services. Pitney Bowes received U.S. Government Services Administration (GSA) certification to provide these services to federal agencies. By acquiring DDD, Pitney Bowes can further leverage the strong relationships DDD has developed with government agencies, as evidenced by its strong recurring annual revenue exceeding $70 million per year.

“Government agencies are increasingly turning to trusted third parties to perform non-core activities,” says Garrison. “They seek to unlock and share the information contained in documents, manage the regulatory requirements of storing documents, all while creating more efficiency.  For many of these agencies, using a third party to help them engineer the flow of the communication not only results in bottom line cost savings, but increases organizational effectiveness because they can now focus on their core mission.”

Formed in 1980, DDD employs approximately 1,200 full-time employees. DDD’s corporate officers have more than 110 years of combined experience. “We are excited at the tremendous synergy and capacity to surpass customer expectations by combining these two organizations, ” says Donald D. Dilks, president and CEO, DDD Company, Landover, MD. “While we have successfully managed and grown DDD for over two decades, Pitney Bowes will bring critical mass, a strong commitment to R&D, and new ability to create a document strategy for customers across their enterprise.

In business since 1988, Pitney Bowes Management Services, Inc. (PBMS) began by providing on-site mailroom management to large corporate (Fortune 1000/FTSE) customers and top law firms and quickly expanded its scope to match customer demand. Today PBMS employs nearly 16,000 worldwide and provides benefits to nearly all of the Fortune 500 and represents more than 20% of Pitney Bowes’ consolidated revenue.  Pitney Bowes is the world’s leading provider of integrated mail and document management systems, services, and solutions.  The $4.4 billion company helps organizations of all sizes engineer the flow of communication to reduce costs, increase impact, and enhance customer relationships.  The company’s 80-plus years of technological leadership has produced many major innovations in the mailing industry and more than 3,500 active patents with applications in a variety of markets, including printing, shipping, encryption, and financial services. With approximately 33,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. More information on the company is available at www.pb.com.

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