Kaleyra recently announced its plans to purchase mGage, a global provider of mobile messaging solutions. The agreement sees Kaleyra spending $215m in cash and common stock on the acquisition.
The mGage brand (a Vivial company) offers a best-of-breed mobile messaging solution for business leaders, allowing enterprise clients across a diverse range of markets to engage with customers through mobile channels for a host of situations. mGage supports customers through a cloud-based enterprise mobile messaging platform called Communicate Pro. The company also offers an omnichannel mobile messaging solution, and API Connect service.
Creating a Leading CPaaS Platform
Communicate Pro is the enterprise-level cloud-based platform from mGage that will connect brands with customers through a variety of major mobile messaging channels. The mGage enterprise-grade APIs also support clients in building features into existing platforms.
mGage stands out as one of only four providers in the mobile space with connections to all the major US carriers, which gives it a unique advantage over other solutions. What’s more, the unique offering from mGage supports some of the most valuable brands in the world. The company has built a powerful business model based on minimal churn and recurring messaging.
Further, the top 10 clients for mGage have an average tenure of more than 10 years. The industry-leading product offered by the brand has generated massive 20%+ revenue growth, high-teens EBITDA margin 30%+ gross margins and more.
Welcoming a New Solution to Kaleyra
According to the Founder and CEO of Kaleyra, Dario Calogero, the company is thrilled to be welcoming mGage, the brand’s customers, and the full team to the family. mGage and Kaleyra together will combine two leading cloud communications company into a world-class platform for global CPaaS. In 2021, mGage and Kaleyra will be processing more than 50 billion transactions around the world, with 30% of revenue coming from Europe, 31% from the US, and the rest split evenly between Latin America and APAC.
The transaction makes Kaleyra one of the most valuable and prominent CPaaS companies in the world, combining the omnichannel platform that Kaleyra offers with the mGage mobile footprint and its amazing customer portfolio. The acquisition will support Kaleyra in serving the CPaaS market, which should reach a value of around $26 billion in 2025.
The Senior Managing Director for Blackstone, the shareholder with the controlling ownership of mGage, David Posnick, said that the team is thrilled to be supporting Kaleyra’s acquisition of mGage. The combined company will become a leading player in the mobile industry. Blackstone believes the resulting company will be a strong player going into the future of the CPaaS industry.
