Swiss Post’s Communication Services division is in talks with acquisition candidates and expects to close its next deal in 2025, Head of Corporate Development and Business Unit Digital Enabling Daniel Gerber told Mergermarket.

The division, which provides secure digital data exchange software, has acquired Open Systems and Diartis Group this year, and acquisitions will continue to be part of its growth strategy, Gerber said. Deals will make sense to strengthen Swiss Post in the areas of communication platforms, cybersecurity and software solution connectivity for SMEs and municipalities, he said.

Swiss Post Communication Services, which forecasts revenues of more than CHF 300m for 2025, is now considering larger acquisition candidates than in the past, he said. The target could generate revenues between CHF 10m and CHF 200m, up from the past limit of CHF 100m, he said, adding that targets should be profitable.

While it is easier to acquire Swiss players, the business is also looking at candidates in other European and US countries, he said without elaborating.

The company’s M&A strategy is managed internally, he said, adding that it aims to close three to five deals per year for the next few years.

Any deals will be financed exclusively with funding from Swiss Post Group, Gerber said. From 2021-24, Swiss Post invested CHF 3.6bn, of which 80% went into its infrastructure and processes and the rest into acquisitions in freight logistics. Only 11% went into acquisitions of software and IT companies, as reported. Gerber did not discuss the company’s investment budget for the next four years.

The 1,500-person Communication Services division is not yet profitable, and its current focus is on growth, Gerber said. The vertical’s mid-term objective is to become a relevant business within Swiss Post, he added, without specifying.

Swiss Post reported CHF 7.2bn in operating income and CHF 254m in group profit in 2023.

Communication Services was established in 2020 as a result of Swiss Post’s New Post of Tomorrow strategy. It offers solutions in digital health and e-government, for SMEs and large companies, and made six acquisitions in 2022 and 2023: Hacknowledge, Axsana, Unblu, T2i, SpotMe and terreActive, Gerber said.

Open Systems, a Swiss provider of network and cybersecurity solutions, was acquired in October 2024. In June, Swiss Post Communication Services bought 70% of Swiss Diartis Group, which provides a platform for exchanging sensitive information in the social sector.