PE-backed Sinch buys email delivery platform Pathwire from Thoma Bravo in $1.9bn deal

Swedish cloud communication services provider Sinch said on Thursday it had agreed to buy cloud-based email delivery platform Pathwire in a cash-and-stock deal worth about $1.9bn.

Sinch, which counts SoftBank and Temasek among its investors, will pay the sellers $925m in cash and 51 million new shares in Sinch. Chicago-based private equity firm Thoma Bravo bought a controlling stake in Pathwire in 2019.

This would be Sinch’s third big deal this year. It bought MessageMedia for $1.3bn in June and Inteliquent for $1.14bn in February.

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Texas-based Pathwire, which has more than 100,000 customers, including Lyft and Microsoft, is expected to record revenue of $132m and gross profit of $104m.

The transaction is expected to close by the end of 2021.

Separately, Sinch has raised $750m by issuing 40.1 million new shares.

Reporting by Supantha Mukherjee in Stockholm; editing by Barbara Lewis

Source: Reuters

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