Cloud communications firm Sinch is set to buy mobile messaging business MessageMedia for $1.3bn to bolster small and medium businesses (SMEs) post-pandemic.
Sinch, of which Japan’s SoftBank has a $690m stake, will seal the deal with $1.1bn in cash around 1m new shares.
“Addressing small and medium-sized businesses opens up a new avenue to growth and dramatically expands our addressable market. With MessageMedia as a part of Sinch, we will have the best team in the industry to capitalise on that opportunity,” Sinch CEO, Oscar Werner, said.
MessageMedia, which offers mobile messaging solutions for SMEs, handles over 5bn messages a year across its 60,000 customers.
The messaging firm, in the twelve months ending 30 June, is expected to rake in revenues of $151m and a gross profit of $94m.
The cost to integrate the companies has been estimated to hit around £8m over 18 months.
Sinch has also invested in WhatsApp, Viber, RCS and Instagram, which MessageMedia will reap the benefits of once both companies are fused together.
The deal is expected to close later this year, as it is still subject to regulatory approval.