Sinch, a global leader in cloud communications for mobile customer engagement, announced that it is acquiring MessageMedia, a leader in mobile messaging solutions for small and medium-sized businesses in the United States and Australia, New Zealand, and Europe. Sinch will pay a total enterprise value of USD 1.3 billion, with a total cash consideration of USD 1.1 billion and 1,128,487 new shares in Sinch.
MessageMedia offers a web-based software-as-a-service (SaaS) suite that makes it easy to leverage two-way messaging without any need for coding or familiarity with APIs. It uses a highly automated and scalable tech platform, purposefully tailored to meet the specific needs of small and medium-sized businesses. The company serves over 60,000 customers and handles more than 5 billion mobile messages per year.
Third-party analysts estimate the total, worldwide addressable market (TAM) for ‘Turnkey Consumer Engagement” solutions to USD 9-13 billion, of which the United States makes up around 30 percent. The total market is expected to grow by 25-30 percent per annum in 2020-24, with particularly strong growth in the United States. Small and medium-sized businesses make up around 50-70 percent of the market.
MessageMedia is adding 1,500 new customers each month in the U.S. market. Alongside SMS, it also provides tech for companies to build MMS experiences and mobile landing pages, and it also provides them with tools to integrate other features as well as an API gateway.
Sinch handles around 150 billion mobile customer engagements for its customers annually, and it has eight of the 10 biggest tech companies as customers.
Sinch CEO Oscar Werner 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 capitalize on that opportunity.”
Paul Perrett, MessageMedia CEO, said: “Mobile messaging delivers tremendous ROI but smaller businesses often lack tools that cater to their specific needs.”
“Serving these customers presents a tremendous opportunity, and with Sinch we can build a global leader in our field“.
