People sending a parcel to USA and other countries from Estonia may be dealing with a new company in coming months.

The news comes as Finnish firm Itella acquired the Estonian arm of SmartPost.

SmartPost, which created a parcel network in Estonia, has said that the deal will help it to expand in foreign markets.

The company will be renamed OU Itella SmartPost, and hopes to focus on the development of terminal software and hardware for parcel delivery.

Supervisory board member with SmartPost, Peep Kuld, said: "The main goal for creating a parcel terminal network in Estonia was to support our plans of export and this has been achieved by today."

This follows the SmartPost agreement earlier this year, in which the company agreed to provide at least 100 parcel terminals to CPCR Express - Russia's largest private postal company.