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Deals

Swiss Post to float document management unit SPS in autumn -sources

ZURICH (Reuters) - Switzerland’s Swiss Post is planning to float its SPS unit in autumn in a deal that is expected to value the digital document management company at 400-500 million Swiss Francs ($433-541 mln), two people close to the matter said.

Swiss Post is working with UBS and Credit Suisse on the deal, which will likely see shares worth 150 million Francs offered, they added.

“Various strategic options for the future of Swiss Post Solutions are constantly being examined. An IPO is one of these options,” a Swiss Post spokeswoman said, adding that no decisions have been taken so far.

UBS and Credit Suisse declined to comment.

State-owned Swiss Post has seen the volume of letters sent decline in recent years as customers switch to digital communication, while its Postfinance unit faces challenges in the negative interest rate environment.

As a result, the sources said, Swiss Post lacks the means to fund the expansion of SPS, which helps companies organise their mail by automatically scanning physical mail, digitising and forwarding it to recipients.

SPS says that it ranks among the top suppliers in a global document management market that is worth more than $30 billion. It has more than 1000 customers worldwide, including around 25 percent of the Fortune 100 companies, processing 3 billion documents annually.

SPS, which employs 6,400 staff, posted 2020 earnings before interest and tax of 25 million francs on revenues of 539 million francs, taking a 16 million earnings hit from the COVID-19 pandemic.

($1 = 0.9247 Swiss francs)

Editing by Kirsten Donovan

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