Pitney Bowes has agreed to buy Danka Services International (DSI), a wholly-owned division of Danka Business Systems PLC, for $290 million in cash. The transaction will close by summer.
“Acquiring DSI is in accord with our mission to provide leading edge, global, integrated mail and document management solutions,” said Michael J. Critelli, chairman and CEO, Pitney Bowes. “More than ever, today’s corporations see their documents as strategic assets and understand that information sharing, through efficient document imaging, distribution, management, can ‘unlock’ this value and build distinct competitive advantage.”
The Pitney Bowes’ approach adds measurable value across the document lifecycle, linking physical and electronic forms in a flexible, easily accessible network.
“From outgoing and incoming mail and messaging management, document creation production, to distribution, archiving and retrieval, Pitney Bowes Management Services provides a variety of ways to input, access and manage documents, giving customers tools that match their tasks, processes and their individual work habits,” said Critelli.
Beginning operations in 1991 as Kodak Imaging Services (a division of Eastman Kodak), the group was acquired by Danka in 1996 and became Danka Services International. Today, DSI has approximately 330 on and off-site customer operations and employs 3,400 people across Europe and North America including the U.S., Canada, the UK, Ireland, France, Italy, Denmark, Sweden, Germany, Norway, the Netherlands and Belgium.
The acquisition provides critical mass, additional expertise, and strengthened international market share for Pitney Bowes, and is an important growth strategy to support global enterprises with sophisticated, high-value document management services.
Pitney Bowes Management Services today represents more than 15% of Pitney Bowes consolidated revenue and is among the fastest growing components of the business. Combined, Pitney Bowes Management Services and DSI will produce nearly $1 billion in annual revenue, making it one of the largest players in the market.
Pitney Bowes’ business scope extends to helping customers manage the messages, money (leasing, credit, and funds), business information around core processes, including billing and statement management operations, customer relationship management, supply chain management, and everyday employee communications. Customers gain new flexibility when they can outsource these critical, but non-core business infrastructure processes to Pitney Bowes Management Services.
“If these business basics do not operate at full capacity and peak productivity,” said Critelli, “our customers cannot concentrate on developing the innovative product and services that will deliver value for their own shareholders. Being a trusted outsourcing provider and partner to our customers is a critical element of the value Pitney Bowes’ provides.”
In business since 1988, the company began by providing on-site mail room management services to large corporate customers and law firms, and quickly expanded its scope to match demand.
“We deliver value for our customers by providing both highly skilled staff and industry leading technology to help customers manage a variety of critical processes,” said Karen Garrison, group president, Pitney Bowes Business Services. “Not only do we link communications streams and make key message services available on the desktop, rationalize and manage office support equipment and systems, and manage document factory-level transaction applications and business recovery, but we do so with a flexible mix of on- and off-site personnel and facilities. DSI and Pitney Bowes’ customers alike will benefit as we share experience and applications expertise, collaborate to create best-in-class technology solutions and expand our market reach.”
Randy Miller, who will remain as president, Danka Services International, said, “Joining with Pitney Bowes, a company whose values, market-based strategies and technologies dovetail with ours, is a win for customers. Separately, we provide innovative solutions, but together we become a major force to be reckoned with in digital document and facilities management industry.”
Based in Rochester, NY, USA, DSI provides document management services, including the management of central reprographics departments, the placement and maintenance of photocopiers, print-on-demand operations and document archiving and retrieval services.
Danka Business Systems, headquartered in London, England, UK, and St Petersburg, Florida, USA, is one of the world’s largest independent suppliers of office imaging equipment and related services, parts and supplies. Danka provides office products and services in 30 countries around the world.
Connecticut-based Pitney Bowes Inc is a $4 billion global provider of integrated mail and document management solutions.