STAMFORD, Conn., Sept. 1 -- Pitney Bowes Inc. today announced that it has signed a definitive agreement to acquire all of the remaining outstanding shares of Firstlogic for approximately $50.3 million, excluding cash and debt on the balance sheet. Pitney Bowes currently has 10 percent equity ownership of this privately held company. Firstlogic develops and markets software and services that improve operations in data quality, mailing efficiency, and postal automation. Upon completion of this transaction, Firstlogic will become a wholly-owned subsidiary of Pitney Bowes within Document Messaging Technologies. Subject to regulatory approval and completion of other customary conditions, the transaction is expected to close in the third calendar quarter of 2005.
This acquisition supports the company's long-term ability to deliver added value for customers and growth for shareholders, according to Michael J. Critelli, Chairman and CEO of Pitney Bowes. "We entered the growing $4 billion customer communication management market with the acquisition of Group 1 software last year. The acquisition of Firstlogic extends our platform by giving our customers a more comprehensive portfolio of software, services and solutions. Firstlogic's extensive relationships with top tier system integrators and enterprise software vendors enhance our distribution network and accelerate our global expansion. Like Group 1 before it, this acquisition supports key areas of our growth strategy -- mailstream expansion, global penetration and cross-selling."
Firstlogic, founded in 1984, is the preferred data quality alliance or original equipment manufacturer (OEM) partner for several business intelligence and data integration vendors. It has established itself as a market leader in data quality with its release of IQ8 and the IQ Assurance services. Firstlogic generated over $55 million in revenue in 2004 by providing commercial customers, government agencies and Posts with data quality, commercial mail and postal automation software and services. Firstlogic is headquartered in La Crosse, Wisconsin and employs approximately 400 employees.
According to Eric Lieberman, President of Firstlogic, "This does not change our mission -- it makes it better. This merger is the opportunity to accelerate our business model of delivering a compelling and industry-defining mail and data quality platform spanning both enterprise and geographic boundaries. Our customers will benefit by being able to choose from a broad portfolio of products that complement our core technologies."
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