Sinch, Wavy acquisition approved by regulators
Sinch AB has received regulatory approval for its acquisition of Latam-based messaging platform Wavy.
First announced in March last year the deal will see Sinch merge Wavy, which was previously part of Movile Group, with the TWW business it acquired in late 2019 in Brazil. Founded in 1996, TWW was the third largest SMS connectivity provider in Brazil at the time of its acquisition and currently employs 260 people.
The cash and stock deal for Wavy will see Movile International Holdings BV receive 1,534,582 shares in Sinch and BRL 355 million cash, "implying an estimated value of SEK 1,170 million". The transaction is expected to close in H2 of this year.
“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 Oscar Werner, Sinch CEO.
“Coming together provides global reach and scale for international customers as well as enhanced quality and reach via more direct connections into Brazil," Werner continued.
Wavy – which offers services in Brazil, Mexico, Colombia, Peru, Chile, Argentina and Paraguay – has direct connections to more than 50 mobile operators in Latin America and currently handles more than 13 billion business messages per year. Enterprise customers relying on Wavy’s SMS capabilities include Caixa, Atento and CitiBanamex.
Wavy has also carved a reputation in next-generation, conversational messaging over WhatsApp, with customers in this segment including iFood, Avon and PepsiCo. Sinch said this business is now seeing year-on-year growth in excess of 250%.
Wavy CEO, Eduardo Henrique, said: “Wavy is built on passion, innovation and a mission to make an impact on a global scale. Joining forces with Sinch strengthens how businesses engage with our customers worldwide. We are on a journey that has only just begun and look forward to the combined future of Sinch and Wavy.
"The deal creates a leading A2P company in Latam, especially Brazil and Mexico, based on volume. For clients, this brings more expertise and even stronger service,"
As part of the deal Henrique will join Sinch's senior management team in the newly created role of chief business development officer and president for Latin America.
In the next issue of Capacity, Sinch CEO Oscar Werner talks about the firm's acquisition strategy and entry into the Indian market.