Growth through acquisitions is a key part of the Sinch corporate strategy and an important means to grow shareholder value. The company evaluates opportunities on an ongoing basis, and looks for targets in two broad categories:
- Scale and Profitability; where we look to acquire sticky customer relationships, leverage shared platform assets, extract synergies, and add more direct operator connections. These acquisitions are typically EV/EBITDA-accretive, which means that we acquire profit at a valuation below our own
- Technology & Go To Market; where we look for complementary technology that fits our strategic product roadmap, go-to-market capabilities in relevant products and geographies, and offerings with increased software value-add and higher gross margins.
We have made a number of successful acquisitions that have increased our profitability and strengthened our product offering. We see opportunities to make further value-accreditive acquisitions also in the future.
- Oscar Werner, President and CEO
On December 1, 2009, Sinch predecessor CLX Networks acquired Symsoft, a supplier of software and services to mobile network operators. The acquisition strengthened our technical infrastructure and added valuable relationships with mobile operators.
On February 28, 2014, we acquired the assets of Voltari's messaging business in North America. The acquisition added a skilled workforce, an established customer base and strategically-important operator contracts in the USA and Canada.
On January 8, 2015, we acquired 66.67% of Caleo Technologies. The acquisition added solutions and expertise in the BSS area.
On May 13, 2016, we announced the acquisition of Mblox Inc. for a cash consideration of USD 117 million. At the time, Mblox was one of the largest messaging service providers in the world, delivering 7 billion messages in 2015. The transaction was closed on July 12, 2016.
On December 9, 2016, we announced the acquisition of Sinch AB for an enterprise value of SEK 130 million. Sinch added real-time voice and video products, as well as innovative products for mobile number verification. The transaction was closed on December 21, 2016. We would later use the Sinch name as our main brand, when we rebranded our business under a shared identity in 2019.
On February, 21, 2017, we announced the acquisition of Xura Secure Communications GmbH. The acquisition strengthened our position in Germany, adding critical product capabilities and enhancing our blue-chip customer base. We acquired Xura for USD 15.5 million on a cash and debt-free basis.
On May 9, 2017, we announced the acquisition of global messaging and security services provider Dialogue Group Ltd for GBP 32 million on a cash and debt-free basis. The acquisition increased our scale, expanded our presence in Asia, and contributed the Sentinel product line for fraud detection and revenue assurance in enterprise messaging. The transaction was closed on May 10, 2017.
On July 4, 2017, we acquired the remaining 33.33% of Caleo Technologies.
On March 22, 2018, we announced the acquisition of Unwire Communications ApS for a cash consideration of DKK 148 million on a cash and debt-free basis. The acquisition strengthened our Nordic platform and customer base, making us the largest CPaaS provider in the Nordic region. The transaction was closed on March 27, 2018.
On April 4, 2018, we acquired 100 percent of the share capital in Vehicle Agency LLC, a Seattle-based company specializing in technology and solutions for personalized video messaging and rich media communications. The initial purchase consideration was USD 8 million on a cash and debt-free basis. In addition, an earnout of USD 4 million was paid in July. The acquisition was financed with cash reserves. Additional earnouts, capped at USD 18 million, may be paid in the future.
On September 26, 2019, we entered into a definitive agreement to acquire myElefant SAS for an upfront cash consideration of EUR 18.5 million, with an additional cash earnout of up to EUR 3 million within two years if certain gross profit targets are met. This acquisition strengthens Sinch’s Software-as-a-Service offering. Founded in Paris in 2010, the company has pioneered the use of mobile landing pages and is an early adopter of conversational messaging technologies like RCS, Facebook Messenger and WhatsApp. The transaction was closed on October 8, 2019.
On October 10, 2019, we entered into a definitive agreement to acquire TWW do Brasil S.A. for an enterprise value of BRL 180,750 million. Founded in 1996, TWW serves more than 3,000 business, including many of Brazil's leading enterprises in the banking, retail and education sectors. This acquisition presents opportunities for Sinch to offer its broad portfolio of next-generation messaging in a rapidly expanding, dynamic growth market, in addition to strengthening its global connectivity offering to its global customer base. The transaction was closed on October 24, 2019.
On March 19, 2020, we entered into a definitive agreement to acquire Chatlayer BV for an Enterprise Value of EUR 6.9 million. Founded in Antwerp in early 2018, ChatLayer is a cloud-based software platform that lets businesses create multi-lingual chatbots and voicebots using Artificial Intelligence (AI) and Natural Language Understanding (NLU).
On March 26, 2020, we entered into a definitive agreement to acquire Wavy, through the two legal entities Movile Internet Móvel S.A. and Wavy Global Holdings BV, for a total cash consideration of BRL 355 million and 1,534,582 new shares in Sinch. This corresponded to an enterprise value of SEK 1,187 million. The transaction closed on 1 February, 2021.
On May 5, 2020, we entered into a binding agreement to acquire SAP Digital Interconnect (SDI), a unit within SAP, for total cash consideration of EUR 225 million. SDI offers cloud-based communications services in three segments:
Programmable Communications, Carrier Messaging and Enterprise Solutions. Headquartered in San Ramon, California, SDI has about 330 employees in 20 countries.
The transaction closed on November 1, 2020.
On 15 June, 2020, we entered into a binding agreement to acquire ACL Mobile Ltd (ACL) for total consideration of INR 5,350 million(approximately SEK 655m). Headquartered in Delhi, India, the company has 288 employees and is a leading vendor of communications services in India and Southeast Asia. The business is consolidated from September 1, 2020.
On 17 February, 2021, we entered into a definitive agreement to acquire Inteliquent, the largest independent voice communications provider in the United States, for a total cash consideration of USD 1,140 million on a cash and debt-free basis. Inteliquent employs more than 500 people in the United States and is headquartered in Chicago, Illinois. The transaction is expected to close in H2 2021.
On 9 June, 2021, we entered into a definitive agreement to acquire MessageMedia, a leader in mobile messaging solutions for small and medium-sized businesses in the United States and Australia, New Zealand, and Europe. Sinch will pay a a total enterprise value of USD 1.3 billion, with a total cash consideration of USD 1.1 billion and 1,128,487 new shares in Sinch. USD 1,140 million on a cash and debt-free basis. MessageMedia offers a web-based software-as-a-service (SaaS) suite that makes it easy to leverage two-way messaging without any need for coding or familiarity with API:s. The company serves over 60,000 customers and handles more than 5 billion mobile messages per year. The transaction is expected to close in H2 2021.
On September 22, 2021 we entered into a definitive agreement to acquire MessengerPeople, a leading German software-as-as-service platform for conversational messaging. Sinch will pay a total enterprise value of EUR 48 million, with a total cash consideration of EUR 33.6 million and EUR 14.4 million paid in the form of new shares in Sinch. MessengerPeople offers a cloud-based software suite that makes it easy for businesses to engage with their customers via messaging apps like WhatsApp, Telegram and Apple Business Chat (iMessage). More than 700 businesses use MessengerPeople applications to engage with their customers, and around 80% of these businesses are based in the DACH region. The transaction is expected to close in the fourth quarter 2021 and will be financed with a combination of new Sinch shares and Sinch’s available cash at hand.
On September 30, 2021, we entered into a definitive agreement to acquire Pathwire, the leading cloud-based email delivery platform, , including its Mailgun, Mailjet and Email on Acid products for developers and marketers. More than 100,000 businesses use Pathwire’s products to engage with their customers, including major brands such as Lyft, Microsoft, Iterable, DHL and Etsy. Sinch will pay the sellers a cash consideration of USD 925 million and 51 million new shares in Sinch, which corresponds to an enterprise value of approximately USD 1.9 billion, or SEK 16.6 billion. The transaction is expected to close by the end of 2021.