Sweden's Sinch Buys Email Delivery Platform Pathwire in $1.9 Billion Deal

By Dominic Chopping

STOCKHOLM--Sweden's Sinch AB, a cloud communication services provider backed by Softbank Group Corp., said Thursday that it has agreed to buy U.S. cloud-based email delivery platfom Pathwire in a cash-and-stock deal worth $1.9 billion.

Pathwire's email deliverability platform is used for transactional and marketing email and ensures that emails are received in customers' prime inbox and are rendered correctly across devices and email 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 it has on Thursday completed a new directed share issue of 40.1 million shares raising 6.6 billion Swedish kronor ($749.2 million) to part finance the deal.

In the twelve months ending Dec. 31, Pathwire is expected to record revenue of $132 million, gross profit of $104 million, and adjusted earnings before interest, tax, depreciation and amortisation of $55 million. The business employs around 290 people and is headquartered in San Antonio, Texas.

One-off integration costs are estimated to reach around SEK75 million over 18 months.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

09-30-21 0608ET