Sinch to Buy German Messaging Platform in EUR48 Million Deal
By Dominic Chopping
STOCKHOLM--Sweden's Sinch AB, a cloud communication services
provider backed by Softbank Group Corp., said Wednesday that it has
agreed to a 48 million-euro deal ($56.3 million) to buy
MessengerPeople, a German software-as-as-service platform for
The deal will see Sinch pay EUR33.6 million in cash and EUR14.4
million in the form of new shares in Sinch.
Founded in Munich in 2015, MessengerPeople offers a cloud-based
software suite that helps businesses engage with their customers
via messaging apps like WhatsApp, Telegram and Apple Business Chat
(iMessage). Over 700 businesses use MessengerPeople applications,
"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," said Sinch
Chief Executive Oscar Werner.
In the year ending December 2021, MessengerPeople is expected to
generate revenue of EUR5.1 million, gross profit of EUR4.5 million,
and adjusted earnings before interest, tax, depreciation and
amortization of EUR600,000, it said. The company has around 40
employees and is based in Munich, Germany.
The transaction is expected to close in the fourth quarter of
2021 and will be financed with a combination of new Sinch shares
and Sinch's available cash at hand.
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
September 22, 2021 02:57 ET (06:57 GMT)
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