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Cloud communications leader Sinch to acquire SAP Digital Interconnect to redefine how businesses worldwide engage with their customers

News Article

Stockholm, Sweden and Walldorf, Germany – May 5, 2020

Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, and SAP SE (NYSE: SAP) today announced that Sinch AB has entered into a definitive agreement to acquire SAP’s communications unit SAP Digital Interconnect (“SDI”). SDI offers cloud-based communications products and serves more than 1,500 enterprise customers throughout the world. Sinch and SDI share a focus on digital business transformation, creating a first-class customer experience, and ensuring the highest possible quality of services. Sinch will acquire all assets and IP belonging to SDI.

Sinch, which has a scalable platform for messaging, voice and video, will pay EUR 225 million (approximately $250 million USD) on a cash and debt-free basis.

The combined entity will power almost 700 billion engagements per year. Sinch will build upon a customer base includes many of the world’s most valued brands, including top technology companies, banks, payment gateways, retail brands, and mobile operators.

With a mission of connecting the last mile between enterprises, software solutions, customers, employees, and things, SAP Digital Interconnect consists of three segments. Programmable Communications powers omnichannel customer engagement through SMS, push, email, WhatsApp, WeChat and Viber. In 2019, this business processed 18 billion messages on behalf of its enterprise customers. Carrier Services includes a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics. In 2019, SDI processed more than 292 billion carrier messages. Cloud Solutions for Enterprises spans products for contact center and critical event management.

The deal significantly strengthens Sinch’s customer facing, operations and product and engineering resources in the United States and gives the company a larger presence in the Bay Area where SDI is headquartered. It also grows the company’s business in Europe, Asia-Pacific and India.

“With SAP Digital Interconnect now becoming a part of Sinch, we build on our scale, focus and capabilities to truly redefine how businesses engage with their customers, throughout the world,” comments Oscar Werner, Sinch CEO. “The transaction strengthens our direct connectivity globally. Plus, it enables us to expand and accelerate a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics.”

“SAP Digital Interconnect is a leader in its area showing profitable growth and reaching 99 percent of the world’s mobile subscribers. Looking at Sinch’s innovation and investment strategy in the area of cloud communication platforms, we welcome them as the new owner of SDI. Sinch is perfectly positioned to unleash further growth potential we see in SDI,” said Thomas Saueressig, member of the Executive Board of SAP SE, responsible for SAP Product Engineering.

This is Sinch’s second transaction exceeding $100 million USD since late March. On March 26, Sinch announced its intention to acquire Wavy in a deal valued at $119 million USD.

About Sinch

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 voice, video, and sms services. 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 30 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.

About SAP Digital Interconnect

SAP Digital Interconnect (SDI) enables enterprises to cover the “last mile” with their customers and connect businesses, people, and things in the digital economy. This is being done using SMS, e-mail, push notification, and social network channels. SDI provides cloud-based, API-driven engagement services that help mobile network operators, enterprises and developers drive digital transformation with intelligent, interconnected, multichannel engagements. SDI has a strong customer base of blue-chip customers, including 1,500+ enterprise customers and 500 mobile operators, spanning 190 countries. For more information, visit SDI pages on the SAP home page or the SDI profile.

About SAP

As the Experience Company powered by the Intelligent Enterprise, SAP is the market leader in enterprise application software, helping companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. SAP simplifies technology for companies so they can consume our software the way they want —without disruption. Our end-to-end suite of applications and services enables more than 440,000 business and public customers to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.

For further information, please contact:

Jeff Hasen, Director of Communications

[email protected]  

Financial community:

Ulrich Wolf, +49 (6227) 7-60212, [email protected], CET

Media relations:

Susan Miller, +1 (610) 661-9225, [email protected], ET

Daniel Reinhardt, +49 (6227) 7-40201, [email protected], CET

Important information

This communication may contain certain forward-looking statements. Such statements are all statements that do not relate to historical facts and include expressions such as "believe", "estimate", "anticipate", "expect", "assume", "predict", "intend", "may", "presuppose", "should" or similar. The forward-looking statements in this release are based on various estimates and assumptions that in several cases are based on additional assumptions. Although Sinch believes these assumptions were reasonable when made, such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that are difficult or impossible to predict and that are beyond Sinch's control. Such risks, uncertainties and important factors could cause the actual results to differ materially from the results expressly or implicitly indicated in this communication through the forward-looking statements. The information, perceptions and the forward-looking statements in this release apply only as of the date of this release and may change without notice.

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 8:00 am CET on May 5, 2020.