Pitney Bowes Expands Presort

Pitney Bowes Inc., Stamford, Conn., has agreed to acquire 100% of the stock of PSI Group, Inc., which is described as the nation's largest mail presort company, for $130 million.

"The acquisition of PSI is an outgrowth of our commitment to delivering shareholder and customer value," says Michael J. Critelli, chairman and chief executive of Pitney Bowes. "PSI's knowledge and expertise in helping high-volume mailers reduce the costs and speed the delivery of mail complements our existing businesses and will help us better serve our high-volume customers."

PSI employs about 900 people in its 12 operating centers across the U.S. and in its headquarters in Omaha, Neb. It estimates that it has a 5% share in the $1.2 billion outsourced presort services market.

Pitney Bowes, a $4.1 billion global provider of integrated mail and document management solutions, serves more than two million businesses of all sizes in more than 130 countries.

In another announcement, Pitney Bowes says it will provide fleet and asset support services to IBM in a new agreement worth up to $100 million over five years.