Customer engagement software developer Sinch agreed yesterday to acquire Australia-based mobile messaging platform developer MessageMedia in a $1.3bn transaction facilitating an exit for internet and telecommunications group SoftBank.
The deal consists of $1.1bn in cash, with the remainder to be supplied in the form of 1.1 million new Sinch shares. It follows reports publicly listed Sinch had raised $1.1bn from investors including SoftBank and Singaporean state-owned investment firm Temasek last month.
MessageMedia has built an online messaging platform that helps small and medium-sized businesses communicate and interact with their customers over mobile. It processes more than 5 billion mobile messages each year and is used by more than 60,000 customers.
The company is expecting to generate $151m of revenue and $94m of gross profit in the 12 months ending June this year.
Oscar Werner, chief executive of Sinch, said: “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.”
MessageMedia had raised approximately $42m in a 1999 private placement backed by Softbank, Pequot Private Equity Funds, Van Wagoner Capital Management, Essex Investment Management Company, Kingdon Capital Management, Pogue Capital Management and undisclosed institutional investors.