Through the deal, the Swedish CPaaS company will gain access to Pathwire’s Mailgun, Mailjet, and Email on Acid products
Pathwire to be acquired by Sinch. (Credit: Gerd Altmann from Pixabay)
Sinch has agreed to acquire US-based cloud-based email delivery platform Pathwire for SEK16.6bn ($1.9bn) from funds managed by Thoma Bravo and Turn/River Capital in a cash-cum-stock deal.
The acquisition includes Pathwire’s Mailgun, Mailjet, and Email on Acid products that are claimed to be used by over 100,000 developers and marketers.
Pathwire offers an email deliverability platform for transactional and marketing email. The company’s customers include Lyft, Microsoft, DHL, Iterable, and Kajabi.
The company’s Mailgun product provides APIs to enable developers to integrate automated email messages into products as well as workflows. On the other hand, the Mailjet product has a drag-and-drop email builder and suite of APIs to help marketers to boost customer engagement and maximise marketing return on investment (ROI).
Email on Acid is said to offer an automated pre-deployment checklist, which helps in further boosting deliverability rates. It also ensures that all the email messages render properly across various email providers and devices.
The product is a pre-deployment platform that is integrated into Mailjet through a feature called Inbox Preview.
Pathwire had acquired Email on Acid in June 2021.
Pathwire CEO Will Conway said: “Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes. I’m proud of what the Pathwire team has accomplished, and I’m tremendously excited about this next step on our journey and the many opportunities we can unlock together.”
As per the terms of the deal, Sinch will pay $925m in cash and 51 million of its new shares to the sellers.
The Swedish company said that the acquisition of the US firm strengthens its position as a global Communication Platform as a Service (CPaaS) major.
The consolidated company expects to cater to more than 180,000 customers across business users and developers.
Sinch CEO Oscar Werner said: “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.
“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.”
The deal, which is subject to regulatory clearances and other customary closing conditions, is expected to close by the year-end.
Last month, Sinch signed a deal worth €48m to acquire MessengerPeople, a German software-as-as-service platform for conversational messaging.