Sweden’s Sinch buys e-mail delivery platform Pathwire for $ 1.9 billion
By Dominic Chopping
STOCKHOLM-Sveriges Sinch AB, a provider of cloud communications services supported by Softbank Group Corp., said on Thursday that they have agreed to buy the US cloud-based e-mail delivery platform Pathwire in a cash transaction worth $ 1.9 billion.
Pathwire’s e-mail delivery platform is used for transactional and marketing emails and ensures that e-mails are received in customers’ main inbox and reproduced correctly between devices and e-mail providers, Sinch said.
Sinch will pay the sellers, which include funds managed by Thoma Bravo LLC and Turn / River Capital, $ 925 million in cash and 51 million new shares.
In connection with the deal, Sinch said that on Thursday it has completed a new private placement of 40.1 million shares that will collect 6.6 billion Swedish kronor (749.2 million dollars) to partially finance the deal.
During the twelve months ending December 31, Pathwire is expected to have revenue of $ 132 million, a gross profit of $ 104 million and an adjusted profit before interest, tax, depreciation and amortization of $ 55 million. The company employs approximately 290 people and is headquartered in San Antonio, Texas.
Non-recurring costs for integration are estimated to amount to approximately SEK 75 million over 18 months.
Write to Dominic Chopping at [email protected]