Neopost acquires GMC Software to grow presence “beyond mail”

Mailing technology company Neopost has acquired the Swiss-based customer communications software company GMC Software, calling the move a “significant step in the businesses beyond mail”. French company Neopost, which describes itself as the world’s second largest mailroom equipment provider, said the acquisition supports its efforts to grow faster in multichannel customer communications. The world’s largest mailroom equipment provider, US firm Pitney Bowes, has taken a similar move towards the multichannel approach in recent years.

GMC’s software and market presence offers Neopost better access to larger mail producers and also synergies within its existing mailroom products and its Satori address data business.

GMC also offers Neopost the basis for development of software as a service capabilities for the small business market.

While Neopost sees itself as currently having strength in the mid-volume area of the market, it told investors that combining with GMC would extend that presence to the high volume and very high volume end of the market, with access to major finance, utility and government customers, while also extending more within the low volume SME segment.

GMC was founded in 1994 and currently has 300 employees, including 130 engineers, serving more than 1,200 customers in 60 countries who collectively produce more than 100m personalised documents each month.

Neopost said the firm was among the top five in the customer communications software market, with sales of CHF 42m in 2011 and has enjoyed double-digit growth for several years in the row.

“Major step”

“GMC’s know-how will enable us to provide additional services beyond the exchange of mail”

Denis Thiery, the Neopost chairman and chief executive, said in buying GMC Software Neopost was gaining a fast-growing business.

“GMC’s recognised technology and know-how will enable us to provide additional services to our customers in a major step toward the integrated and coordinated management of various customer communication tools, beyond the exchange of mail.

“It will also allow us to extract revenue synergies with our high-end folder/inserter customers while giving us better access to the major accounts with whom GMC has forged close ties,” said Thiery.

Neopost and GMC had worked together prior to the acquisition in reseller and equipment manufacturer partnerships over the last few years.

Growth opportunities

René Müller, the GMC Software chief executive, is to continue in his role as CEO and board member for at least a year as the company is run as an independent unit within the Neopost Group.

He said the acquisition of his privately-owned company ensured the future of GMC as he approaches retirement age.

“Joining Neopost is a great source of satisfaction for us,” said Dr Müller, “We will be able to continue expanding GMC’s range of products for large accounts and maximise growth opportunities by leveraging Neopost’s customer base while at the same time moving into another league from the strategic posting of view.

“The complementary fit between our software solutions and Neopost data quality or output solutions, for example, is obvious,” he added.

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