Sinch has claimed its third acquisition of the year so far with the purchase of German SaaS firm MessengerPeople for £41.2m.
The deal is expected to close in Q4 and will see Sinch pay a total enterprise value of €48m (£41.2m), through a combination of available cash in hand and new shares in Sinch.
MessengerPeople was founded six years ago and specialises in conversational messaging. It offers a cloud-based suite that allows businesses to interact with their customers via messaging apps such as WhatsApp, Telegram, and iMessage.
Over 700 businesses use MessengerPeople’s applications to engage with their clients, with 80 percent of those businesses based in the DACH region. The Munich-based firm has a headcount of 40 and is expected to generate revenues of €5.1m for its year ending 31 December 2021.
“I’m very impressed with the MessengerPeople team and their success in bringing innovative products to market,” stated Oscar Werner, CEO of Sinch.
“Most businesses have yet to discover the benefits of conversational messaging, and together we are superbly placed to win in this market as uptake now begins to accelerate”
Sinch’s latest purchase marks its third so far this year, previously acquiring Inteliquent in February and MessageMedia in June, both for over $1bn. It also received a cash injection of $1bn in March to aid its M&A growth.
The addition of MessengerPeople is expected to complement Sinch’s own API-based offering for larger enterprises and channel partners.
Franz Buchenberger, founder & CEO of MessengerPeople, added:
“Mobile messaging is simple, quick, and interactive – and used by people all over the world. Empowering businesses to use messaging is a tremendous market opportunity and teaming up with Sinch gives us the size to pursue it on a global scale.”
