Shares of business services company Pitney Bowes (PBI - Get Report) were rallying in premarket trading Monday after it announced the sale of one of its business units to Syncsort.

The company said it will sell its software operation to Syncsort for $700 million in cash and expects the deal to close before the end of 2019. Most of the money will be used to pay down the company's short-term debt, Pitney Bowes said in a press release.

"We have always said, however, if a business was worth more to someone else than to us, we would consider a sale," said Pitney Bowes CEO Marc B. Lautenbach.

The company also updated its earnings outlook, saying it now expects adjusted earnings per share for the year in the range of 65 cents to 75 cents. The new guidance takes into account the restructured business without its software unit.

Wall Street analysts were estimating earnings of 90 cents before the news announcement.

The company said that full-year revenue, adjusted for the sale, should grow in the range of 1% to 2% assuming that foreign currencies don't move in value. Wall Street analysts had been expecting sales growth of 1.2% before the news.

Shares were rising 9.42% to $3.95 in premarket trading.

Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!

Constable owns none of the securities listed in this story.