Pitney Bowes Plans To Sell Dictaphone

Pitney Bowes Inc. said Wednesday it has agreed to sell its Dictaphone Corp. unit and related worldwide operations for $450 million in cash to an affiliate of Stonington Partners Inc.

The sale to Dictaphone Acquisition Corp. is contingent upon financing and regulatory approval. The deal is expected to close in July.

A limited partnership managed by Stonington Partners will provide $110 million in exchange for equity, Stonington lawyer Judy Witterschein said. The rest of the deal with be financed with debt.

Pitney Bowes, a maker of office machinery, previously said it would sell Dictaphone as part of efforts to narrow its product line. The company said it would use the proceeds from the sale to reduce debt and for other purposes.

Dictaphone makes voice processing, dictation and communication recording systems.