Danka Business Systems is to sell its outsourcing division, Danka Services International, to Pitney Bowes for $290m (£200m). Profits gained form the sale will be used primarily to repay a substantial portion of Danka's existing bank debt.

P Lang Lowrey, Danka's chief executive officer, said: "Pitney Bowes will provide a strong platform for the development of DSI's business. In addition, we've achieved our financial goal for the sale, which will enable us to move forward in completing our restructuring plan."

The sale, which is part of a wider restructuring plan, includes the exchange offer for all $200m (£138m) of Danka's outstanding 6.75% convertible subordinated notes as well as the refinancing of its existing senior credit facility.

President of Danka's DSI division, Randy Miller, added: "Their services, relationships, and worldwide presence make Pitney Bowes a strategic fit for our business. With their support, we are looking forward to improving and expanding our business operations."

www.pitneybowes.com

Jessica Jarlvi