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 that meet one of these criteria:
- Improved scale and profitability, where we can extract synergies by migrating acquired messaging traffic onto our own shared platform;
- Improved reach, where acquired entities add local sales capacity or direct connectivity to important mobile carriers; and/or,
- Complementary technology, which helps broaden our offering and increase our completeness.
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.
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. Sinch completed the first stage in the acquisition of ACL on September 1, 2020, and consolidates the business from this date.