Kaleyra Acquires MGage In $215 Million Deal

American communications provider Kaleyra announced the company has finalized the purchase of mobile messaging service provider, MGage, in a deal worth approximately $215 million.

As part of this new deal, MGage investors received a total of $195 million in cash, as well as 1.6 million shares of Kaleyra stock. Kaleyra will combine MGage’s resources and talent with it’s own to continue the company’s global expansion, which currently handles operations in over 190 countries.

"This acquisition redefines Kaleyra by uniting two world-class enterprise cloud communications companies, creating a top-5 global CPaaS platform with a global footprint of diversified and balanced products.” commented CEO and founder, Dario Calogero. “This combination will accelerate and expand Kaleyra’s opportunity to serve the CPaaS market which is expected to reach $26 billion in 2025 with a compound annual growth rate of 35%1 and the broader A2P Enterprise messaging market which is expected to reach $78 billion in 2022.”

MGage focuses on providing business and enterprise customers messaging services across multiple channels, including formats such as SMS, MMS, Push, and RCS. Kaleyra representatives have commented that the company sought to finalize the deal after realizing how well MGage’s services would complement its own product portfolio.

Kaleyra representatives also announced the company recently sold 8.4 million in common stock, as well as raising $200 million in senior unsecured convertible notes, providing further support for the Kaleyra’s plan for expansion.

Edited by Maurice Nagle