By Colin Kellaher

Kaleyra Inc. on Friday said it agreed to buy mGage, a mobile messaging solution provider majority owned by Blackstone Group Inc., for $215 million in cash and stock.

Kaleyra, a Milan-based cloud communications software provider, said the deal consideration includes $195 million in cash and 1.6 million common shares.

On a pro-forma basis, Kaleyra said it expects combined 2021 revenue topping $350 million, with more than 50 billion transactions processed worldwide.

Kaleyra said it will fund the transaction with a combination of $200 million in senior unsecured convertible notes and the sale of 8.4 million shares in a private investment offering.

The company said it expects to complete the convertible notes and stock sales immediately prior to the closing of the mGage acquisition, expected in the second quarter.

Shares of Kaleyra, which closed Thursday at $16.68, rose more than 14% in premarket trading Friday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

02-19-21 0740ET