Sinch snaps up Wavy in £98 million deal
Swedish mobile cloud coms firm Sinch (STO:SINCH) has entered into a definitive agreement to acquire Brazilian messaging provider Wavy.
It is Sinch’s second acquisition announcement of the last week and the 10th since its IPO in 2015.
The new deal will see Sinch pay £58.5 million in cash and 1,534,582 in shares, with the total deal valued at £98 million.
“Uniting Sinch and Wavy significantly strengthens our offering in next-generation messaging and expands our presence in Latin America. Our shared vision, greater scale and global outlook makes us uniquely well placed to succeed in the marketplace, innovate with our customers, and grow our business,” said Sinch CEO Oscar Werner (pictured).
Wavy is part of Movile Group and is an established business messaging provider in Latin America. The company has leveraged its text messaging operation to build a prominent position in next-generation, conversational messaging. It is currently the second-largest messaging provider in Brazil and also offers services in Mexico, Colombia, Peru, Chile, Argentina and Paraguay.
Wavy has commercial agreements with more than 50 mobile operators in Latin America and reported that it currently handles more than 13 billion business messages per year for such enterprise customers as Caixa, CitiBanamex and Atento.
Wavy has also taken a lead in next-generation, conversational messaging over WhatsApp. With year-on-year growth above 200%, customers in this segment include Latin American food delivery leader iFood, beauty group Avon and ticket sales specialist Ingresso Rápido.
The transaction is expected to close in the second half of the year, subject to customary closing conditions, including regulatory approval from CADE, Conselho Administrativo de Defesa Econômica, which is the competition authority in Brazil.
Earlier this month it was confirmed that Ericsson is to incorporate Sinch’s SMS Function (SMSF), a cloud-native 3GPP-specified messaging product into its core network to support its global 5G rollout.