Cloud-based communication firm, Sinch AB has recently revealed plans to acquire email delivery platform, Pathwire in a cash-and-stock deal, including its brands' Email on Acid, Mailjet, and Mailgun for developers and marketers.
Through this acquisition, Sinch will become a global CPaaS (communications platform as a service) provider that can offer top-quality solutions at scale across all major digital communications channels that businesses use to communicate with their consumers.
For the uninitiated, Pathwire offers a superior email deliverability platform for marketing and transactional email. The company’s products are used by over 100,000 businesses, including prominent brands like Iterable, Kajabi, Lyft, Microsoft, and DHL.
The company’s email delivery platform helps businesses cut costs by offering cloud-based email service, ensuring every message reaches its recipient as intended. It assures that emails are received with minimal delay and are featured in inboxes through its feature-rich email API, email testing tools, and deliverability services.
Sinch CEO, Oscar Werner said that with Pathwire, they would provide a best-of-breed product set, spanning across messaging, voice, and email to enable businesses and developers in creating an unrivaled digital customer experience.
Will Conway, Pathwire CEO, mentioned that the two companies are a natural fit as both Sinch and Pathwire established their businesses around product excellence, a commitment to positive results for its clients, and a focus on clear, measurable results.
Sources cite that the global email delivery market is valued at USD 16 billion. Over 60% of this figure comes from transactional emails sent in response to a user's action, such as receipts, booking confirmations, and password resets.
With the latest acquisition, Sinch will solidify its position as a leader in this market.
The deal is expected to be finalized by the end of 2021. While the transaction is subject to closing conditions, including the filing of a merger-control application with the Federal Trade Commission and the Department of Justice in the United States.
Source Credit- https://www.globenewswire.com/news-release/2021/09/30/2305901/0/en/Sinch-acquires-Pathwire-the-leading-email-delivery-platform-and-intends-to-carry-out-a-directed-share-issue-secured-by-investor-undertakings.html