By Dominic Chopping
STOCKHOLM – Sinch AB of Sweden, a cloud communications service provider backed by Softbank Group Corp., said on Wednesday it had accepted a â¬ 48 million ($ 56.3 million) deal to buy MessengerPeople, a German software as a service platform for conversational messaging.
The deal will see Sinch pay 33.6 million euros in cash and 14.4 million euros in new shares in Sinch.
Founded in Munich in 2015, MessengerPeople offers a cloud-based software suite that helps businesses interact with their customers through messaging apps like WhatsApp, Telegram, and Apple Business Chat (iMessage). More than 700 businesses use MessengerPeople apps, he added.
âMost businesses have yet to discover the benefits of conversational messaging, and together we are uniquely positioned to win in this market as adoption now begins to accelerate,â said Sinch CEO , Oscar Werner.
In the year ending December 2021, MessengerPeople is expected to generate revenue of 5.1 million euros, gross profit of 4.5 million euros and adjusted profit before interest, taxes, depreciation. and depreciation of 600,000 euros, according to the press release. The company has approximately 40 employees and is based in Munich, Germany.
The transaction is expected to close in the fourth quarter of 2021 and will be funded by a combination of new Sinch shares and Sinch’s available cash.
Write to Dominic Chopping at [email protected]