“Each form of digital communication has its unique advantages, and delivering high quality on a large scale requires both extensive technical skills and in-depth expertise,” said Oscar Werner, CEO of Sinch. “Together with Pathwire, we will be able to offer a world-class set of messaging, voice and email products that enable businesses and developers to create an unmatched digital customer experience.”
This also gives Sinch a much bigger foothold in the U.S. market, where it made other acquisitions, such as the purchase of Inteliquent for $ 1.14 billion earlier this year. (Pathwire is based in San Antonio, TX.)
As with other services on the broader platform Sinch has built, the broader concept Sinch is pursuing in acquiring Pathwire is “embedded communications.”
Messaging, voice services, email, and other communication tools are difficult to build from scratch, and for many businesses that rely on them for their apps, websites, and other customer interactions, this is not the essential core of their services and it would be costly to invest resources to build, distracting and difficult to update and maintain in the long run. APIs have changed the game here by allowing developers or others to incorporate communication services created and operated by others into these diverse experiences. The same API concept has been applied in other extremely tough technology areas such as financial services and payments.
However, Pathwire’s products cover a few different basics, making it a compelling buy for Sinch. Mailgun is his great developer-centric API game in cloud-based communication. Mailjet is now a bit more accessible for less tech-savvy people, giving them the ability to drag-and-drop the email APIs. Email on Acid is another step in this low-code direction, adding more functionality to its users to ensure consistency of appearance across different delivery platforms, etc.
“Sinch and Pathwire are a natural fit: both companies built their businesses on product excellence, a commitment to positive outcomes for our customers, and a focus on clear, measurable results. I’m proud of what the Pathwire team has achieved, and I’m excited about this next step in our journey and the many opportunities we can open together, ”said Will Conway, CEO of Pathwire, in a statement.
“We are proud of what we have achieved with Will and the Pathwire team over the past few years by investing in product initiatives, leadership and M&A, including the acquisitions of Mailjet and Email on Acid,” added Hudson Smith, partner at Thoma Bravo. added. “Sinch is the perfect strategic partner to support Pathwire and build on its market-leading position as the preferred email communications partner for developers and marketers.”
Pathwire in particular was a decent company with forecast revenue for this year (end of December) of $ 1$ 32 million, gross income of $ 104 million, and Adjusted EBITDA of $ 55 million.