Swiss Post to Strengthen Cybersecurity With Open Systems Buy – Source: www.databreachtoday.com

Governance & Risk Management
,
Network Detection & Response
,
SASE

Acquisition Set to Boost SASE Protection, Network Connectivity for Swiss Businesses

Michael Novinson (MichaelNovinson) •
September 18, 2024    

Swiss Post plans to purchase secure access service edge stalwart Open Systems to enhance secure communications and data protection for public authorities and private companies.

See Also: Moving Beyond Fragmented Cloud Security with Unified SASE

The Bern, Switzerland-based conglomerate said its proposed acquisition of Zurich-based Open Systems will help the firm provide cutting-edge network and security management solutions on a global scale. Open Systems has been majority-owned by private equity firm EQT since 2017, and last year it split its managed detection and response business into a stand-alone entity called Ontinue (see: Open Systems Splits Ontinue MDR Division From SASE Business).

“Open Systems strongly complements our existing offerings in the area of cybersecurity,” said Swiss Post Communications Services CEO Nicole Burth. “The company is an excellent cultural fit and supports our strategy to bring cybersecurity to our Swiss customers. This makes the network and communication of businesses more efficient and secures it with the unique cloud security solutions Open Systems provides.”

What Open Systems Brings to the Table for Swiss Post

Open Systems, founded in 1990, employs more than 260 people and in January 2020 bought Swiss data science, AI, cloud and cyber services provider Sqooba. The firm was established and led by Daniel Neuhaus, who became Open Systems’ chief technology officer after the acquisition. When Open Systems CEO Geoff Haydon moved over to Ontinue as part of the split, Neuhaus was promoted to CEO.

The deal is subject to approval by the German Competition Authority, given Open Systems’ operations in Germany, and is expected to close this fall. All Open Systems staff will remain employed if the deal is approved, and Neuhaus will continue leading the company. Terms of the acquisition weren’t disclosed, and Swiss Post and Open Systems executives weren’t immediately available for additional comment.

“We carefully considered who the future partner of Open Systems should be,” Neuhaus said in a statement. “We’ve been supporting companies in their international business and growth, particularly Swiss global market leaders, for over 30 years. In Swiss Post, we’ve found a sustainable partner based in Switzerland that shares our values of trust, reliability, security and customer focus.”

Burth said Open Systems’ expertise in network and cybersecurity solutions will help Swiss Post expand its digital security services and implement secure communications platforms through which the sender, recipient and communications channels are protected and effectively designed. Specifically, Burth said, the deal means Swiss Post can offer secure communications solutions to public authorities and private firms.

Open Systems’ specialization in network and cybersecurity solutions, particularly its SASE platform, will enable Swiss Post to better protect the digital communications networks of its clients, the firms said. Neuhaus said Swiss Post is the right partner to help Open Systems continue its growth and innovation, particularly with cloud-native solutions that support companies in network transformation.

How Open Systems Fared Under EQT’s Ownership

Under EQT’s ownership, Open Systems doubled its sales, tripled its EBTDA and went from being a managed security service provider to a company focused on network transformation and cloud-based solutions. Open Systems said its SASE platform provides seamless network and security integration and safeguards the data of companies and nongovernmental organizations in more than 180 countries.

“Swiss Post focuses on three key areas in digital communication: protected communication platforms; the digital connectivity of companies and authorities; and cybersecurity solutions for a secure digital environment,” Daniel Gerber, head of corporate development and business unit digital enabling, said on LinkedIn. “Open Systems contributes precisely in these areas.”

Open Systems’ technology is well-regarded by analysts and was the highest-rated among nine vendors in the Forrester Wave for zero trust edge service providers in April. Forrester praised Open Systems for rolling out application-driven service orchestration and autoresolving incidents with AI and automation, but it criticized the company for lagging around integration, cloud access and SLAs for experience assurance.

“Open Systems sets an example of a successful MSSP evolution to ZTE services,” said Forrester Senior Analyst Octavio García Granados. “It sustains its momentum through an excellent vision of target customer profiles, strong commitment to R&D and deep engineering expertise.”

Silicon Valley-based Ontinue will remain under EQT’s ownership even after the sale of Open Systems. The 300-person managed extended detection and response company benefited from the November 2022 acquisition of United Kingdom-based managed security service provider Tiberium to help automate the investigation, triage and response for basic security alerts on Microsoft (see: Open Systems Buys Tiberium to Automate Security on Microsoft).

“Thanks to the dedication and commitment of the management team led by Daniel [Neuhaus], Open Systems delivers attractive technology and services from Switzerland to its customers globally,” said EQT Director Philipp Woerner. “We could not have imagined a better future home for Open Systems than Swiss Post to support continuing the strong development.”