Sinch AB, the Swedish cloud communications platform for mobile engagement, announced an agreement to acquire myElefant SAS. This is Sinch’s seventh acquisition since its IPO in 2015. The deal terms include an upfront cash consideration of €18.5 million with an additional cash earnout of up to €3 million within two years, assuming certain gross profit targets are met.
Since its start in 2010, myElefant built a cloud-based platform for mobile engagement, pioneering mobile landing pages and the use of conversational messaging technology like RCS, Facebook Messenger, and WhatsApp. Thanks to the tools’ low-code design, business users can create immersive media experiences for their customers without devoting too much time to development. In 2018, myElefant generated revenues of €10.5 million, with year-on-year revenue growth of 25 percent.
Commenting on the deal, Sinch CEO Oscar Werner said, “Through advanced yet easy-to-use software, myElefant has successfully shown how next-generation messaging can drive tangible and measurable business outcomes. With myElefant as a part of Sinch, we can offer our global customer base and established ecosystem partners a sophisticated software platform, with powerful real-time analytics, that offers a step-change in customer experience.”
Cyril Puget, President and co-founder of myElefant sees the acquisition as an opportunity to build on the company’s growth thus far: “We see rising demand from businesses who want to use messaging to transform their customer journey. Together with Sinch, we gain the scale and reach to compete on a truly global basis. We’re excited to join forces and together pursue the market opportunities that we now see emerging.”
The transaction is expected to close in early October 2019 and will be financed using Sinch’s available credit facilities. Handelsbanken Capital Markets is serving as a financial advisor to Sinch for the acquisition.