- SyncSort — a leader in Big Iron to Big Data software — announced it signed a deal to buy Pitney Bowes’ Software Solutions business for $700 million in cash.
Syncsort — a global leader in Big Iron to Big Data software — announced it has signed a definitive agreement to acquire Pitney Bowes’ Software Solutions business for $700 million in cash. As a combined entity, Syncsort and the Pitney Bowes software and data business will become one of the largest data management software companies in the world and a leader in data quality by serving more than 11,000 customers and hundreds of resellers globally. And with its unique scale and broader solution set, the company is going to offer differentiated capabilities to enterprises seeking to maximize insight from their data.
This is Syncsort’s largest acquisitions ever. And it brings to the company superior location intelligence, data enrichment, customer information management, and customer engagement solutions that are complementary to its existing portfolio.
“Our remarkable transformation and rapid growth story continues. We could not be more excited for the next phase of the journey with the Pitney Bowes software products and talented team as part of our world-class organization,” said Syncsort CEO Josh Rogers. “Together, we will be one of the leading players in the data management software space and positioned to drive even greater value for customers and partners alike, especially in areas like regulatory compliance, security, data science and hybrid cloud. Leading enterprises are facing significant challenges around the quality of their data, and we will offer unparalleled capabilities for customers to easily integrate, enrich, improve and gain insight from their data.”
And this combination builds on and significantly expands the breadth of Syncsort’s offerings in data quality software and complements existing Syncsort Trillium products. And the transaction is expected to close by the end of the calendar year pending regulatory approvals and other customary closing conditions.
“Syncsort’s acquisition of the Pitney Bowes software & data business creates a market-leading data management platform. With the company’s unique scale, there is an exceptional opportunity to apply the strength of the combined product portfolios and differentiated expertise of the talented teams to tackle the most complex data management challenges that large and small enterprises face, and support their most strategic initiatives through continued innovation and development,” explained Centerbridge Senior Managing Director Jared Hendricks.
Pitney Bowes’ software business is based on four key lines including Location Intelligence, Data Enrichment, Customer Information Management, and Customer Engagement.
“Our software and data business has made great progress over the last few years achieving two consecutive years of growth and I am very confident of the prospects for this business going forward,” noted Pitney Bowes president and CEO Marc B. Lautenbach. “We have always said, however, if a business was worth more to someone else than to us, we would consider a sale. The sale of our Software Solutions business to Syncsort confirms that philosophy. Our software and data business, together with Syncsort, provides instant scale that creates value for our clients, partners, and the Pitney Bowes Software Solutions team.
After Pitney’s conclusion of the company’s evaluation of strategic alternatives in 2018, the senior management at the company along with the Pitney Bowes Board of Directors committed to considering other options to unlock value for shareholders.
Since then, the company divested its Document Messaging Technologies (DMT) Production Mail and supporting software business, sold its direct operations within the Global SMB business in 6 smaller European countries, paid down debt, altered the return of cash to shareholders from a dividend to a share buyback, launched Wheeler Financial Services, and continued to invest in its core business with new products in Global SMB and new capabilities in Commerce Services, including the expansion of its domestic delivery network.
And Pitney is planning to use the majority of the net proceeds from the sale to pay down near-term debt maturities.
“We have several tranches of debt that are maturing over the next two years and we will use the majority of the net proceeds from this transaction to pay down that debt and we will refinance the remainder,” commented Pitney Bowes Executive Vice President & Chief Financial Officer Stan Sutula. “Further, we have well-established relationships with our bank group and are structuring a proactive refinancing plan that reflects a diversity of funding sources and will leverage the capital markets, as appropriate.”
The transaction is backed by affiliates of Centerbridge Partners, L.P. and Clearlake Capital Group, L.P. And debt commitments have been provided by Jefferies Finance LLC, Credit Suisse, Golub Capital LLC, and Antares Capital LP. Plus Credit Suisse and Jefferies LLC served as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Syncsort.
