Sinch has reached an agreement to acquire email delivery platform Pathwire for $1.9bn.
Pathwire’s brands include Mailgun, Mailjet and Email on Acid.
Oscar Werner, Sinch CEO, said: “Every form of digital communications has its unique benefits and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise.
“Together with Pathwire, 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”
Pathwire is expected to hit sales of $132m this year, with adjusted EBITDA or $55m. Organic revenue growth has regularly exceeded 30 percent year on year, it added.
Sinch will pay Pathwire shareholders $925m in cash and 51 million new shares. Publicly listed Sinch currently has a value of around $11bn.
This represents the firm’s fourth acquisition of the year following Inteliquent, MessageMedia and MessengerPeople.
Pathwire CEO, Will Conway, said: “Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes.
“I’m proud of what the Pathwire team has accomplished, and I’m tremendously excited about this next step on our journey and the many opportunities we can unlock together.”
Pathwire said that over 100,000 businesses use its email products including Lyft, Kajabi, Microsoft, Iterable, and DHL.
Sinch said the acquisition makes it one of few global CPaaS providers that can deliver scale across all digital channels businesses use to engage with customers.
This Article was first published by UC Today.