SAP sells digital comms business to messaging firm for €225m

Oscar Werner CLX.png

Software company SAP has sold its digital communications unit to messaging company Sinch for €225 million.

The unit, SAP Digital Interconnect (SDI), supplies cloud-based communications products to more than 1,500 enterprise customers throughout the world, said SAP today.

Sinch CEO Oscar Werner (pictured) said: “Sinch and SAP both recognise the power of cloud technology to drive business transformation and deliver a superior customer experience. With SDI now becoming a part of Sinch, we build on our scale, focus and capabilities to truly redefine how businesses engage with their customers, throughout the world.”

The deal includes three SDI activities, including programmable communications, for enterprise-targeted services through SMS, push, email, WhatsApp, WeChat and Viber. Its carrier messaging business includes a range of services to mobile operators, including products for person-to-person messaging, reporting and analytics. And enterprise solutions includes products for contact centres, including public cloud solutions, and critical event management.

SAP board member Thomas Saueressig said: “Looking at Sinch’s innovation and investment strategy in the area of cloud communication platforms, we welcome them as the new owner of SDI. Sinch is perfectly positioned to unleash further growth potential we see in SDI.”

Sinch, based in Stockholm, has been highly acquisitive since its share flotation five years ago, then under the name CLX Networks. It has bought 11 companies, including Mblox, Xura and the original Sinch, which gave the whole group its name.  

SDI had revenues of €340 million in the year to the end of March 2020, with a gross profit of €94 million. Sinch expects the transaction to close in the second half of the year.