Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, and SAP SE announced that Sinch AB has entered into a definitive agreement to acquire SAP’s communications unit SAP Digital Interconnect (“SDI”). SDI offers cloud-based communications products and serves more than 1,500 enterprise customers throughout the world. Sinch and SDI share a focus on digital business transformation, creating a first-class customer experience, and ensuring the highest possible quality of services. Sinch will acquire all assets and IP belonging to SDI.

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Sinch, which has a scalable platform for messaging, voice and video, will pay EUR 225 million (approximately $250 million USD) on a cash and debt-free basis.

The combined entity will power almost 70 billion engagements per year. Sinch will build upon a customer base includes many of the world’s most valued brands, including top technology companies, banks, payment gateways, retail brands, and mobile operators.

With a mission of connecting the last mile between enterprises, software solutions, customers, employees, and things, SAP Digital Interconnect consists of three segments. Programmable Communications powers omnichannel customer engagement through SMS, push, email, WhatsApp, WeChat and Viber. In 2019, this business processed 18 billion messages on behalf of its enterprise customers. Carrier Services includes a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics. In 2019, SDI processed more than 292 billion carrier messages. Cloud Solutions for Enterprises spans products for contact center and critical event management.

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The deal significantly strengthens Sinch’s customer facing, operations and product and engineering resources in the United States and gives the company a larger presence in the Bay Area where SDI is headquartered. It also grows the company’s business in Europe, Asia-Pacific and India.

“With SAP Digital Interconnect 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,” comments Oscar Werner, Sinch CEO. “The transaction strengthens our direct connectivity globally. Plus, it enables us to expand and accelerate a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics.”

“SAP Digital Interconnect is a leader in its area showing profitable growth and reaching 99 percent of the world’s mobile subscribers. 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,” said Thomas Saueressig, member of the Executive Board of SAP SE, responsible for SAP Product Engineering.

This is Sinch’s second transaction exceeding $100 million USD since late March. On March 26, Sinch announced its intention to acquire Wavy in a deal valued at $119 million USD.

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