Stockholm-based customer engagement platform Sinch has bought Wavy, a Brazilian business messaging tool, to expand the Swedish company’s influence in Latin America. The deal, which should close next quarter, includes a total cash consideration of BRL 355 million (nearly 60.5 million) and 1,534,582 new shares in Sinch.

Two elements of Brazilian company were valuated separately: the established SMS business, and a newer, evolving element of conversational messaging through WhatsApp.

Previously owned by Mobile Group, Wavy is the second-largest messaging provider in Brazil with services in Mexico, Colombia, Peru, Chile, Argentina and Paraguay. According to a press release, the company has seen year-on-year growth above 200 percent. 

Once the transaction has closed and approved, Wavy CEO Eduardo Henrique will become a member of the Sinch senior management team, and Movile Group will be a new key shareholder.

The issued shares are subject to customary lock-up undertakings, so 50 percent of the shares may not be divested for 12 months, and the other 50 percent may not be divested for 18 months.

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