Pathwire’s best-in-class Mailgun and Mailjet products to expand Sinch’s position as a global leader while enhancing the customer experience
September 30, 2021 – Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, today announced that it has entered into a definitive agreement to acquire Pathwire, the leading cloud-based email delivery platform, including its Mailgun, Mailjet and Email on Acid products for developers and marketers, from Thoma Bravo, a leading software investment firm.
Pathwire provides a best-in-class email deliverability platform for transactional and marketing email. Built to remove the complexities of the world’s most-used digital communications channel, Pathwire ensures that the right messages are delivered to the right person at the right time.
During Thoma Bravo’s ownership, the firm supported the creation of the Pathwire brand, combining the Mailgun and Mailjet products, giving customers access to a broader set of solutions to help them grow and improve their customers’ experience.
The acquisition of Pathwire means that Sinch will become one of the very few, global CPaaS providers that can deliver leading quality at scale across all the main digital communications channels which businesses use to engage with their customers.
“Every form of digital communications has its unique benefits and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise,” commented Oscar Werner, Sinch CEO. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email, that empowers businesses and developers to craft an unmatched, digital, customer experience.”
Businesses turn to cloud-based email service providers to avoid costly in-house solutions and to ensure that each message reaches its recipient as intended. Through its feature-rich email API, email testing tools, and accomplished deliverability services, Pathwire ensures that emails are received with minimum delay, that they are showcased in customers’ prime inbox, and that messages render pixel-perfect on every device and with every email provider. Together with a highly efficient, online go-to-market model, these product strengths have allowed Pathwire to outgrow the competition and deliver consistently high growth and high profitability.
Pathwire’s offering is centered around three core products:
- Mailgun offers powerful APIs that let developers integrate automated email messages into products and workflows. With unmatched deliverability rates, Mailgun is the preferred choice for developers looking to send, receive and track emails using a cloud-native, scalable infrastructure.
- Mailjet offers a drag-and-drop email builder and suite of APIs that empower marketers to increase customer engagement and maximize marketing ROI. Its powerful tools cater for the entire life cycle of an email; from design and creativity to testing, deliverability, and analytics.
- Email on Acid further improves deliverability rates, through an automated pre-deployment checklist, and ensures that every email message renders well across different email providers and devices.
“Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes. I’m proud of what the Pathwire team has accomplished, along with Thoma Bravo’s support and expertise, and I’m tremendously excited about this next step on our growth journey and the many opportunities we can unlock together,” commented Will Conway, Pathwire CEO.
“We are proud of what we accomplished with Will Conway and the Pathwire team over the past few years,” commented Hudson Smith, a Partner at Thoma Bravo. “Together we deployed Thoma Bravo’s extensive operational capabilities to combine Mailgun and Mailjet and create Pathwire, an end-to-end email platform built for growth. Sinch is the right strategic partner to support Pathwire as the company continues transforming digital communications infrastructure and we look forward to following the team’s continued success for many years to come."
Research by Technavio estimates that the worldwide market for email delivery is worth USD 16 billion. More than 60 percent of this amount relates to transactional email, which are delivered in response to an action by an end user, such as booking confirmations, receipts and password resets.
Closing of the transaction is subject to customary closing conditions, including merger-control filing to the Federal Trade Commission and the Department of Justice in the US.
The transaction is expected to close by the end of 2021.
Moelis & Company UK LLP is acting as financial advisor to Sinch in the transaction, with K&L Gates LLP acting as legal advisor. Morgan Stanley & Co. LLC is acting as financial advisor to Pathwire, with Goodwin Procter LLP acting as legal advisor. Kirkland & Ellis LLP is acting as legal advisor to Thoma Bravo.
Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world’s largest companies. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 40 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
Pathwire offers email API technology and intuitive email marketing solutions that empowers companies around the world to solve complex communication problems. Through its Mailgun, Mailjet, and Email on Acid brands, Pathwire delivers over 250 billion emails a year for companies like DHL, Wikipedia, Toast, Lyft, and Microsoft. It provides reliable, cloud-native infrastructure, local expertise, and smart solutions based on machine learning so companies can more easily reach their customers and build connected experiences. Pathwire has employees worldwide including in the UK, Spain, France, Germany, and the US, with a headquarters in San Antonio, Texas. For more information, visit pathwire.com.
About Thoma Bravo
Thoma Bravo is one of the largest private equity firms in the world, with more than $83 billion in assets under management as of June 30, 2021. The firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging the firm's deep sector expertise and proven strategic and operational capabilities, Thoma Bravo collaborates with its portfolio companies to implement operating best practices, drive growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings. Over the past 20 years, the firm has acquired more than 325 companies representing over $100 billion in enterprise value. The firm has offices in Chicago, Miami and San Francisco. For more information, visit thomabravo.com.
This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 08:30 CEST on September 30, 2021.
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