Munich – Swedish Sinch AB is acquiring Messenger People, a German software-as-a-service platform for conversational messaging. For this purpose, both companies reached an agreement in which a purchase price of 48 million euros was set.
Of this amount, 33.6 million will be paid in cash and a further 14.4 million in the form of new Sinch shares. The shares held by the previous shareholders have lapsed. The transaction is expected to be completed in the fourth quarter of 2021, the signing has taken place. With the purchase of Messenger People, the company aims to complement its own API-based offering for larger enterprises and channel partners. It is the third corporate acquisition this year for NASDAQ Stockholm-listed Sinch. After integrating Inteliquent and Message Media, Sinch is also currently negotiating with Pathwire, a cloud-based email platform valued at $1.9 billion.
Munich-based Messenger People was founded in 2015 and employs about 40 people. The company offers a cloud-based software suite that makes it easier for businesses to communicate with their customers via Messenger apps such as WhatsApp or Telegram. The software is used by more than 700 companies, around 80 percent of which are based in the DACH region. Pre-sales activities and customer support services account for around 85 percent of the volume. A majority of enterprise customers are in the e-commerce, automotive and media industries, but government agencies also use the software offerings. Current customers include tourism group Tui, e-commerce specialist Women's Best and the government of the Indian state of Telangana. For the current fiscal year, Messenger People expects revenues of 5.1 million euros and gross profits of 4.5 million euros.
Weitnauer M&A specialists Marc René Spitz and Dr. Tobias Schönhaar provided joint and comprehensive legal advice to Munich-based Messenger People. This time-critical transaction is based on a complex structure. The buyer Sinch handled the deal through a US subsidiary. This subsidiary, in turn, founded a non-operational subsidiary for this purpose, which in turn was merged with the target company. The transaction was therefore a share deal under US law.