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Acquisition boosts Sinch’s customer base to more than 180,000, annualized revenue run rate to USD 2.3 billion, and employee count to 4,000
Stockholm, Sweden, and San Antonio, Texas – September 30, 2021 – Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, today announced that it has entered into a definitive agreement to acquire Pathwire, the leading email delivery platform including its Mailgun, Mailjet, and Email on Acid products, used by more than 100,000 developers and marketers.
Sinch will pay a cash consideration of USD 925 million and 51 million new shares in Sinch. Using yesterday’s closing Sinch share price of SEK 165.9, and USD/SEK exchange rate of 8.8, this corresponds to an enterprise value of approximately USD 1.9 billion, or SEK 16.6 billion.
The acquisition of Pathwire solidifies Sinch’s position as a global CPaaS leader, serving over 180,000 customers across business users and developers. Pathwire provides a best-in-class email deliverability platform for transactional and marketing email. Pathwire’s customers include major brands such as Lyft, Microsoft, Iterable, DHL and Kajabi.
With the addition of Pathwire, Sinch’s annualized revenue run rate will be USD 2.3 billion, and employee count will grow to 4,000.
Mailgun is the preferred choice for developers looking to incorporate automated email messages into workflows through APIs. Built to remove the complexities of the world’s most-used digital communications channel, Mailgun offers unmatched deliverability rates and ensures that the right messages are delivered to the right person at the right time.
Mailjet offers a drag-and-drop email builder and suite of APIs that empower marketers to engage with customers through powerful tools that cater to the entire lifecycle of an email; from design and creativity to testing, deliverability, and analytics.
“Every form of digital communications has its unique benefits, and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise,” comments Oscar Werner, Sinch CEO. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email, that empowers businesses and developers to craft an unmatched, digital, customer experience.”
The acquisition of Pathwire means that Sinch becomes one of the very few, global CPaaS providers that can deliver leading quality at scale across all the main digital communications channels which businesses use to engage with their customers.
Research by Technavio estimates that the worldwide market for email delivery is worth USD 16 billion, and that more than 60 percent of this amount relates to transactional email. Transactional emails are delivered in response to an action by an end user, such as booking confirmations, receipts and password resets. This differentiates transactional emails from marketing emails, which are initiated by an organization to promote services or create engagement.
Businesses turn to cloud-based email service providers to ensure that the right messages get to their intended recipient, maximizing ROI and customer engagement. Through its feature-rich email API, email testing tools, and accomplished deliverability services, Pathwire ensures that emails are received with minimum delay, that they are showcased in customers’ prime inbox, and that messages render pixel-perfect on every device and with every email provider.
Together with a highly efficient, online go-to-market model, these product strengths have allowed Mailgun and Mailjet to outgrow the competition and deliver consistently high growth and high profitability.
“Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes. I’m proud of what the Pathwire team has accomplished, and I’m tremendously excited about this next step on our journey and the many opportunities we can unlock together,” comments Will Conway, Pathwire CEO.
Additional financial details of the transaction can be found here.
Closing of the transaction is subject to customary closing conditions, including merger-control filing to the Federal Trade Commission and the Department of Justice in the US.
For further information, please contact
Jeff Hasen VP of Communications Sinch Jeff.hasen@sinch.com
About Sinch
Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video APIs. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world’s largest companies. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 40 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at www.sinch.com.
About Pathwire
Pathwire offers email API technology and intuitive email marketing solutions that empowers companies around the world to solve complex communication problems. Through its Mailgun, Mailjet, and Email on Acid brands, Pathwire delivers over 250 billion emails a year for companies like DHL, Wikipedia, Toast, Lyft, and Microsoft. It provides reliable, cloud-native infrastructure, local expertise, and smart solutions based on machine learning so companies can more easily reach their customers and build connected experiences. Pathwire has employees worldwide including in the UK, Spain, France, Germany, and the US, with a headquarters in San Antonio, Texas. For more information, please visit www.pathwire.com.