Sinch Purchases SAP Digital Interconnect

The partnership will change how companies engage with customers

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Sinch-Acquires-Sap-Digital-Interconnect
Unified Communications

Published: May 7, 2020

Rebekah Carter - Writer

Rebekah Carter

Sinch, a global provider of leading cloud communications solutions for engagement, recently announced the creation of a new agreement for the purchase of SAP Digital Interconnect. The SAP Digital Interconnect unit, or “SDI,” is SAP’s communication unit, offering cloud-based communications products to more than 1,500 enterprise customers worldwide.

Both SDI and Sinch are focused on delivering excellent digital transformation experiences and providing first-class customer experiences. Sinch is acquiring all assets and IP technology belonging to SDI, in a deal that is valued at around $250 million USD.

The combined entity will be responsible for powering almost 70 billion customer engagements every year, for some of the world’s most valuable brands, including leading tech companies, payment gateway providers, banks, and mobile operators.

Sinch Strengthens its Position Once Again

Despite global M&A activity dropping in the last quarter, prompted by a significant amount of uncertainty in the marketplace, Sinch has continued with its strategic acquisition strategy. The SAP Digital Interconnect purchase will mark the third purchase for Sinch this year, following ChatLayer and Wavy acquisitions. This is also Sinch’s 11th purchase since its IPO in 2015.

SAP Digital Interconnect is built on the mission to enhance the last mile between software solutions, enterprises, employers, and things. This means that the environment is made up of three distinct segments. The Programmable Communications environment encourages enhanced omni-channel customer engagement through email, SMS, and chat services like WhatsApp. In 2019, this area of the business processed over 18 billion messages on behalf of enterprise customers.

Elsewhere, Carrier Services supports a range of crucial services for mobile operators, including person-to-person messaging products, analytics, and reporting. During 2019, the segment processed more than 292 billion carrier messages. Finally, Cloud Solutions for Enterprises covers the contact centre, as well as event management tools.

The new deal between SAP and Sinch will enhance Sinch’s customer-facing, product, engineering, and operations resources in the US. Additionally, it will help Sinch’s business to grow in Europe, India, and the Asia Pacific regions.

An Exciting Step Into the Future

Sinch CEO, Oscar Werner, said that with SAP Digital Interconnect as a part of Sinch, the company will be able to build on its scale, capabilities, and focus on refining how companies can engage with their customers across the globe. The transaction will strengthen Sinch’s connectivity on a global basis, while allowing the company to accelerate a range of crucial service to mobile operators, including person-to-person messaging, analytics, and reporting.

Commenting on the acquisition, Executive board member for SAP SE, Thomas Saueressig, said that Sinch’s investment and innovation strategy makes them the perfect new owner for SDI. Sinch is now well-positioned to unleash all of the “growth potential” that SAP sees in the SDI environment.

 

 

Customer ExperienceDigital TransformationMergers and Acquisitions
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