Sinch Strengthens SaaS Offering – Acquires MyElefant
Sinch takes SaaS a step further
Sinch is a company dedicated to bringing people and businesses closer together with tools for better personal engagement. Recently, the leading brand in cloud communication solutions for mobile engagement announced that it had entered into an agreement to purchase MyElefant. The MyElefant brand offers a mobile messaging SaaS platform allowing brands to improve customer engagement across multiple mobile messaging channels.
The acquisition of MyElefant is valued at EUR 18.5 million, with a further cash earnout of up to 3 million if the targets for gross profit are met. MyElefant is a cloud-based platform solution that uses low-code design to allow businesses to create more immersive experiences for customers with minimal coding. The MyElefant brand is a pioneer in the use of conversational messaging technologies and mobile landing pages.
Another Step Forward in SaaS for Sinch
According to the CEO of Sinch, Oscar Werner, through state-of-the-art yet easy to use software, MyElefant has shown the landscape how messaging can support business success. With MyElefant as a valuable part of the Sinch portfolio, the company can offer its global customer base and ecosystem partners a more sophisticated software platform, with real-time analytics that offer a significant change in customer experience.
The MyElefant SaaS platform is currently used by over 160 enterprise customers. Enhanced landing pages via mobile that are unique to each recipient allow businesses to combine the 100% connectivity of SMS with rich media capabilities, analytics, and interactivity common from a web page. Existing customers of the solution include Nespresso, Orange, and Nissan. Already, MyElefant has achieved incredible success, generating revenues of around 10.5 million EUR in 2018. Additionally, year-on-year growth for the brand in 2018 was 25%.
An Exciting Partnership
According to the co-founder and president of MyElefant, Cyril Puget, the company is seeing rising demands from businesses that want to use messaging to transform their customer journeys. With Sinch’s help, MyElefant is excited to pursue the market opportunities that it now sees emerging in the landscape. The transaction is expected to come to a close in early October 2019 and will be financed using the available credit facilities from Sinch.
Sinch is currently working on maintaining a financial target of adjusted EBITDA below 2.5x. As of the second quarter of 2019, adjusted EBITDA was 1.0x when measured on a 12-month rolling basis. The purchase of MyElefant increases the Sinch adjusted EBITDA by around 0.4x.