Pitney Bowes Offers 53% Premium for MapInfo Corp.

Shares of location intelligence company MapInfo Corp. rose 51% yesterday to $20 on news the company would be acquired by Pitney Bowes Inc. in an all cash offer for $408 million, or $20.25 per share. The buyout price represents a 53.3% premium over Wednesday's closing price of $13.21. MapInfo produces location-specific software that provides customers the ability to decide where to place a retail location or a wireless tower in order to maximize business. The deal will likely close in the second quarter. According to the press release, "Pitney Bowes expects the acquisition to be neutral to earnings per diluted share in 2007. However, after aligning MapInfo's accounting with the policies used by Pitney Bowes for its software businesses, the acquisition is expected to reduce reported earnings per diluted share by approximately $.04 in 2007."

Sources: Press Release, Forbes, Reuters, Information Week, Wall Street Journal
Commentary: Don't Be Fooled By Pitney Bowes' Recent 'Blowout' Quarter • Cramer's Take on PBI
Stocks/ETFs to watch: MapInfo Corporation (MAPS), Pitney Bowes (PBI)

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