The identity of the bidder for Salmat’s business process outsourcing division (BPO) is shrouded in mystery but industry analysts point the finger towards Aussie Post.
Salmat announced it had received an unsolicited and conditional bid for its mail-based division from a ‘credible party whose identity is confidential.’ The company, which is the market leader in the sector providing services for many of Australia’ largest corporation, is generally regarded as having more than 60% of the essential mail market.
The division is reported a 2.6% fall in sales revenue to the 1st half of this year to $158.6m, with a commensurate 1.3% decrease in the volume of its mail packs to 539 million. It has almost completed the full integration of 2007 takeover target, HPA, and in recent years it brought online two Océ-driven high-speed digital colour sites that open up greater opportunities for cross media promotion – so-called transpromo.
Along with competitor, Computershare, Salmat has entered into an agreement with US-based Zumbox to provide digital mail competition to the anticipated October launch of Australia Post’s own Pitney Bowes, Volley system. A takeover bid for Salmat’s BPO could be seen as move to block the opposing bid.
Australia Post is cash rich with a war chest of around $600 million. Under Ahmed Fahour, CEO, it is looking to expand its game, especially into the digital area.
It is thought unlikely for any digital hardware company to make a bid for BPO.
Salmat is considerng the bid along with its advisers, Macquarie Capital and Clayton Utz.