June 10, 2010 / 7:44 AM / 10 years ago

UPDATE 1-Pitney Bowes to buy Portrait Software for 44 mln stg

* Pitney Bowes offers 31 pence a share in cash

* Offer at 35 pct premium to Portrait’s Thursday close

* Portrait swings to FY profit, revenue up

* Portrait shares up 28 pct (Adds details)

June 10 (Reuters) - Pitney Bowes Inc (PBI.N), a U.S.-based provider of mail processing equipments, on Thursday said it agreed to buy British software development firm Portrait Software Plc PST.L for 44.4 million pounds ($64.6 million) in cash.

The 31 pence-a-share recommended offer, represents a premium of 35 percent to Portrait’s Wednesday close.

Portrait shares were up 28.3 percent at 29.5 pence at 0725 GMT on the London Stock Exchange.

“The Pitney Bowes scale and broad geographic footprint will open up new markets for Portrait’s products and will provide a platform from which to achieve growth in the future.” Pitney Bowes Chief Executive Murray Martin said in a statement.

Pitney Bowes, which is a provider of software, hardware and services that integrate physical and digital communication channels, plans to fund the acquisition through its existing available cash resources.

Separately, Portrait Software said it posted a full-year pretax profit of 1.1 million pounds, compared with a loss of 3.1 million pounds last year. Revenue grew 10 percent to 15.9 million pounds for the year ended March 31.

The company also said it made a strong start to the new financial year and looked forward to continued progress. ($1=.6877 Pound) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Aradhana Aravindan)

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