Pitney Bowes Inc., a mailstream services provider, has agreed to acquire MapInfo Corp. for about $408 million in cash.
The agreement was made March 15. Stamford, CT-based Pitney Bowes has commenced a weeklong tender offer at a price of $20.25 per share in cash for each outstanding common share of MapInfo.
MapInfo is the leading global provider of location intelligence solutions. MapInfo’s tools and services are used by more than 7,000 organizations worldwide, generating $165 million in revenue for fiscal year 2006.
Michael J. Critelli, chairman/CEO of Pitney Bowes, said the acquisition strengthens his firm’s position in the growing location intelligence market and enhances its ability to deliver added value to customers worldwide.
“At Pitney Bowes, we have long understood the importance of location in connecting the right information with the right recipient,” he said in a statement.
“Increasingly businesses and governments alike are using location-based information to enhance their reach, performance and decision-making capabilities,” he said.
MapInfo, established in 1986, is headquartered in Troy, NY, and has 940 employees worldwide with locations in the United States, Britain, Canada, Continental Europe, Australia and Asia.
Mr. Critelli said MapInfo leverages Pitney Bowes’ current expertise in location intelligence to deliver a broader range of advanced solutions for retail, communications, insurance, financial services and the public sector as well as strengthening its customer communication management offering.
The transaction is subject to the completion of customary conditions, and is expected to close in the second calendar quarter of 2007. It is anticipated that MapInfo will operate as a wholly owned subsidiary of Pitney Bowes within its software segment.
Pitney Bowes anticipates that within 18 months there will be synergies in the range of $10 million to $15 million from elimination of public company expenses, reduction in administrative infrastructure and increased marketing leverage.
