Sinch has made its second $1bn-plus acquisition of the year in the form of mobile messaging provider MessageMedia.
The deal follows up the firm’s $1.14bn deal for Inteliquent which was announced in February. Sinch will acquire MessageMedia for $1.3bn.
Headquartered in Australia and operating in over 200 countries, MessageMedia offers a web-based software-as-a-service platform that lets small and medium businesses message with their customers.
Oscar Werner, Sinch CEO, said: “Addressing small and medium-sized businesses opens up a new avenue to growth and dramatically expands our addressable market.
“With MessageMedia as a part of Sinch, we will have the best team in the industry to capitalize on that opportunity”
The acquisition comes just weeks after Sinch pledged to launch more M&A bids with a $1bn cash injection from investors.
MessageMedia’s sales for the year ending 30 June 2021 are expected to hit $151m, with a gross profit of $94m.
The acquisition, which is still subject to regulatory approval, is expected to close in the second half of this year.
Paul Perrett, CEO at MessageMedia, said: “Mobile messaging delivers tremendous ROI but smaller businesses often lack tools that cater to their specific needs.
“Serving these customers presents a tremendous opportunity, and with Sinch we can build a global leader in our field.”
MessageMedia claims to serve over 60,000 customers and handle more than five billion mobile messages per year.
