After Raised 690 million dollars from SoftBank Sweden-based cloud communications company to acquire in December to sin Has followed through on its strategy in that department. Today the company announced that it is Getting Intelligent, An interconnection provider for voice communications in the US, currently owned by private equity firm GTCR, for $ 1.14 billion in cash.
And to finance the deal, Sinch said it has raised SEK8.2 billion – $ 986 million – from Handsbanken and Danske Bank, along with other facilities.
The deal will provide Sinch – a competitor to Twilio with messaging, calling and marketing (engagement) APIs to build its services in mobile applications and other services – an important foothold in the US market.
Intelligent – a profitable company with 500 employees and revenue of $ 533 million, gross profit of $ 256 million, and Ebitda of $ 135 million in 2020 – to serve both other service providers and enterprises in the largest voice carrier in North America Claims to be one of Its network connects to all major telcos, covering 94% of the US population, with more than 300 billion minutes of voice calls and 100 million phone numbers delivered to customers.
Is publicly traded in Sweden – where its market cap At 13 billion dollars (just 108 billion Swedish krones) is current – and the acquisition concerns whether the company plans to establish more of a financial presence in the US, for example with an inventory there. We have asked the company what its next steps might be and will update this post when we learn more.
In a statement, Oscar Werner, Sinch CEO, stated, “Becoming a leader in the American voice market is key to establishing Sinch as the premier global cloud communications platform.” “Intelligent is one of the largest and most in-demand voice customers in the US supported by a fully owned network across the US with superior quality. Our combined strengths in voice and messaging provide a unique place to grow our business and provide a better customer experience for our customers. “
Inteliquen serves two main areas, Communications-Platform-A-Service (CPaaS) to provide voice calling and phone numbers for API-based services; And more legacy infrastructure-as-a-service (IaaS) products such as telecon to off-net call termination (when a call is assigned from one carrier to another) and toll-free number. Although almost half of the total turnover is – without thinking – CPaaS business is growing at twice the rate of IaaS.
Its business, like many others, is relying more on communications services, as they are seeing each other as a lesser person – last year saw an increase in usage. (Revenue adjusted without the Kovid lift, it noted, would be $ 499 million, so is still healthy.)
As, since Spinning out of Rebtel in 2014 To carry on the business of providing competition tools to developers, it has been on an acquisition roll to bulk up its geographic reach and the services it provides to those customers.
Deals include, most recently, purchase ACL for $ 70 million in India And SAP Digital Interconnect Business for $ 250 Million. The deal – combined with the acquisition of companies like Twilio Sendgrid for $ 2 billion And last year Segment for $ 3.2 billing, Both of which speak of the large trend of consolidation in the digital (API-based) communications space as well as the enormous value contained within it.
Intelligent itself was controlled by GTCR based in Chicago, much like Intelligent private equity before hand. According to pitch bookIts most recent funding was in 2018 from Oaktree Capital for just $ 19 million.
Interestingly, Intelligent itself has been an investor in Innovative Communications startups. Series B for Gypship, A startup that is building better ways to integrate mobile messaging tools into landline services.
“We are excited about the tremendous opportunities that unlock this combination, we can expand the services our customers provide. In a statement, Ed O’Hara, Intelligent CEO, truly connects us with our leading voice offering with Sinch’s global messaging capabilities for leadership in a rapidly developing market.