Mobile customer engagement provider Sinch has completed the $925m plus shares acquisition of Pathwire, first announced this September.
Pathwire provides an email deliverability platform for transactional and marketing email. More than 100,000 businesses use Pathwire’s products Mailgun, Mailjet and Email on Acid, to engage with their customers.
Pathwire’s customer base includes Lyft, Kajabi, Microsoft, Iterable and DHL.
This is Sinch’s fourth acquisition of the year, after acquiring Germany’s MessengerPeople this September, and also Inteliquent in February and MessageMedia in June.
“Pathwire’s leadership within email enables cost-efficient and high-quality delivery of emails to businesses all over the world,” said Oscar Werner, CEO of Sinch.
“Together, 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 has been financed through a combination of own funds, equity and debt facilities.
At closing, Sinch has paid the sellers, which include funds managed by Thoma Bravo and Turn/River Capital, a cash consideration of $925m. In addition, Sinch will also issue an aggregate of 51m new shares in Sinch to the sellers, which will be issued and delivered in two tranches, in February and May 2022.
Twilio, Vonage and Sinch are said to control 58 percent of the communications platform as-a -service (CPaaS) market, according to Synergy Research Group.
The analyst house says the CPaaS market saw revenue growth of 40 percent year-on-year in the second quarter of 2021, with Twilio generating over a third of sales, said Synergy.
Twilio was on 38 percent of sales, Vonage took 11.8 percent and Sinch claimed 8.1 percent.
