With the acquisition of Pathwire, Sinch will be able to build out the email capabilities of its communications platform. Here are the top-line bullets you need to know.
WHO ARE THE PARTIES TO THE DEAL?
- Pathwire: Texas-based Pathwire provides email API technology and email marketing solutions for developers and marketers. The startup has over 100,000 customers, including DHL, Microsoft, Dell, Lyft, NHL, and American Express. The company has grown 30% year-over-year, and its revenue is expected to reach $132M this year.
- Sinch: Stockholm-based Sinch’s cloud-based communications platform enables enterprises to communicate with their customers via text, voice, video, and, with this acquisition, email. The company maintains operations across 47 countries. In addition to Pathwire, the company has acquired Inteliquent, MessageMedia, and MessengerPeople this year. As the result of this acquisition, Sinch’s annualized revenue run rate will reach $2.3B, and its headcount will reach 4,000.
WHY DOES THE MARKET MATTER?
- The global Communications Platform as a Service (CPaaS) market is projected to grow at a CAGR of 34.3% and reach a value of $26.03B by 2026, according to Mordor Intelligence.
- The Covid-19 pandemic has compelled organizations across various industries to adopt CPaaS solutions in order to enhance digital customer engagement.
- The industry will keep evolving as major companies like Microsoft, Cisco, and AT&T enter the market and facilitate consolidation through M&A activity.