Bern-based software company Xplain is sold to Germany

Published: Thursday, Oct 17th 2024, 17:20

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The Bern-based IT service provider Xplain is being taken over by the Swiss subsidiary of the German Chapters Group based in Hamburg. The software company had become known for a cyberattack in 2023 with consequences for the Federal Administration.

Xplain includes the two companies Xplain AG and the Spanish development partner Xplain Ibérica. Both will continue to operate independently, as Andreas Löwinger, CEO of Xplain AG, told the Keystone-SDA news agency. The 60 employees of both companies will keep their jobs. All projects will also be continued.

Löwinger will remain CEO until a successor is found. He considers it unproblematic that his company is passing into foreign hands, even though it develops software in the area of internal security for various Swiss authorities: "We are by no means the only foreign-owned company that works for the authorities."

The Federal Administration was very cautious about the sale of Xplain. Customers found out about it on Wednesday evening, wrote a DDPS spokeswoman at the request of Keystone-SDA. "The responsible offices in the Federal Administration are currently analyzing what the sale means for cooperation." No further comment could be made at present.

Only the canton of Vaud terminated the contract

In early 2023, hackers attacked a vulnerability on the IT service provider's servers with blackmail software. They stole data from the Federal Administration and published it on the darknet.

With the exception of the canton of Vaud, all customers remained loyal to Xplain. Vaud terminated its contract with immediate effect in February of this year.

At the beginning of May 2024, the Federal Data Protection and Information Commissioner (FDPIC) published three investigation reports on the data leak. He came to the conclusion that both the Confederation and Xplain had made mistakes and made a number of recommendations.

Xplain and two federal offices concerned subsequently announced that they accepted the recommendations. The Federal Council also decided on a series of measures to prevent future data leaks.

Xplain AG was founded in 2000. It has its headquarters in Interlaken.

©Keystone/SDA

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