Pitney Bowes Stock Rises On Acquisition Of Royal Alliances’ Presort Business: Retail’s Elated

Technology firm Pitney Bowes Inc (PBI) said on Tuesday that it has acquired the presort business of Royal Alliances, Inc., a provider of technology-enabled shipping and mailing solutions headquartered in Irving, Texas.

Shares of the firm traded over 2% higher on Tuesday following the announcement, which did not disclose the deal value.

Pitney Bowes provides its clients with SaaS shipping solutions, mailing innovation, and financial services.

The company said the acquisition is expected to add more than 100 million First-Class Mail pieces annually to the Pitney Bowes Presort Services Network and further strengthen it in the East, Central, and West Regions. Pitney Bowes Presort Services is the largest workshare partner of the USPS.

Royal Alliances CEO Aaron McDaniel said the acquisition is the culmination of over a decade of innovation and growth from the Royal Alliances team. “We look forward to launching a new version of our logistics software platform early this year to further delight our customers,” he said.

On Stocktwits, retail sentiment soared to ‘extremely bullish’ territory (87/100) from ‘bullish’ a week ago. 

PBI’s Sentiment Meter and Message Volume as of 10:53 a.m. ET on Jan. 21, 2025 | Source: Stocktwits

One user expressed optimism about the stock’s near-term potential.

For the fourth quarter, the firm expects revenue in the range of $505 million to $515 million, compared to $526 million in the same quarter a year ago.

The firm has also been deleveraging its balance sheet. In November 2024, it announced it had repaid $100 million of the $275 million in senior secured notes issued by Oaktree Capital Management, L.P.

PBI shares have risen over 2% year-to-date and have gained nearly 69% over the past year.

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