The acquisition train just keeps on chugging along for Stockholm’s omnichannel communications platform Sinch, as they’ve just announced the definitive agreement to acquire Munich’s MessengerPeople for €48 million. The purchase will be comprised of €33.6 million in cash and €14.4 million in new shares of Sinch.
Much like a number of Sinch’s other acquisitions of late, they seem to be on the conquest of domination through gobbling up all the competition. MessengerPeople was founded in 2015, and from the outside doesn’t look all that different from the acquisition of Australia’s MessageMedia, for example.
MessengerPeople provides a cloud-based software solution for businesses to engage customers via messaging apps including the standards, WhatsApp, Telegram, iMessage, etc. This acquisition brings over 700 new business customers into the Sinch fold, and gives the Nordic company a strong base in the DACH region, with approximately 80% of these 700 hailing from the region.
“I’m very impressed with the MessengerPeople team and their success in bringing innovative products to market. Most businesses have yet to discover the benefits of conversational messaging, and together we are superbly placed to win in this market as uptake now begins to accelerate”, commented Sinch CEO Oscar Werner.
The transaction is expected to close by year's end and is financed in part by the aforementioned issue of new shares, as well as Sinch’s cash on hand. Considering that Sinch raised over $1 billion in a new share issue back in late May of this year, that €33.6 million in cash on hand is merely an ink stain on the ledger. However, they DID just spend $1.3 billion on MessageMedia, which does leave this author to think, my GOD, just how MUCH cash DO they have lying around?