Business VoIP Featured Article

Sinch AB Buys Email Delivery Solutions Provider Pathwire for $1.9 Billion

October 05, 2021

By Tracey E. Schelmetic, Business VoIP Contributor

Email is the most-used communications channel in business today. Companies use it to communicate internally and with partners, and to open two-way communications channels with customers. It’s a valuable marketing and sales tool and remains highly effective when it comes to response rates. Businesses turn to cloud-based email service providers to avoid costly in-house solutions and to ensure that each message reaches its recipient as intended.

Swedish cloud communications company Sinch AB has announced that it has entered into an agreement to acquire cloud email delivery solutions provider Pathwire. The purchase includes Pathwire’s popular Mailgun, Mailjet and Email on Acid products for developers and marketers. Sinch will pay the sellers a cash consideration of $925 million and 51 million new shares in Sinch. At current share prices and exchange rates,  the value of the transaction is approximately U.S. $1.9 billion, or SEK 16.6 billion.

Pathwire offers an email deliverability platform for transactional and marketing email. The platform, according to Pathwire, was “built to remove the complexities of the world’s most-used digital communications channel,” helping ensure that the right messages are delivered to the right person at the right time. Currently, more than 100,000 businesses use Pathwire’s products to engage with their customers, including major brands such as Lyft, Kajabi, Microsoft, Iterable, and DHL.

With the acquisition, Sinch is slated to become one of the few global communications platform as a service (CPaaS) providers that can deliver high quality at scale across all the main digital communications channels that businesses use to engage with their customers, said the company.

“Every form of digital communications has its unique benefits, and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise,” said Oscar Werner, CEO of Sinch, in a statement. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email, that empowers businesses and developers to craft an unmatched, digital, customer experience.”

Edited by Luke Bellos


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