Neopost Takes on Software Companies With Digital Mail Offering

Neopost SA (NEO), the world’s second-largest supplier of mail-room equipment, will enable customers to increase their use of online post in a bid to compete with software companies.

“It’s driven by a desire by many of our customers to communicate digitally,” Dennis LeStrange, head of Neopost for the U.S., said in a telephone interview yesterday. “It helps to drive more value, more efficiency with less cost.”

The Bagneux, France-based company, which provides postage meters, folder inserts, addressing, mailing and letter-opening systems and services, is targeting organic sales growth of at least 5 percent at constant exchange rates this year as customer demand for communication management solutions helps weather Europe’s economic woes.

Neopost’s software, called Delivery Preference Manager, will allow recipients of invoices and promotions to opt for electronic mail instead of physical post, LeStrange said. Beyond savings on paper, ink, and postage, it may also “reduce the need for call centers,” he said.

The service will be introduced from Sept. 9 in the U.S., and offered in Europe in the next 12 months, he said.

GMC Software Technology, acquired by Neopost last year, alongside Pitney Bowes Inc. (PBI), Hewlett-Packard Co. (HPQ), EMC Document Sciences, Adobe Systems (ADBE) and Thunderhead Ltd. are the leaders in document output for customer communication management, research company The Forrester Wave said in a September 2011 report.

Pitney Bowes, based in Stamford, Connecticut, is the world’s largest provider of mail-room equipment.

Neopost fell 0.2 percent to 52.91 euros at 9:15 a.m. in Paris. The stock has risen 32 percent this year while Pitney Bowes is up 57 percent.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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