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Sinch to acquire SAP Digital Interconnect for €225m

David Murphy
Sinch CEO, Oscar Werner

Sinch, which specialises in cloud communications for mobile customer engagement, has entered into a definitive agreement to acquire SAP’s communications unit, SAP Digital Interconnect (SDI), for €225m (£193m).

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 said it is acquiring all assets and IP belonging to SDI.

The combined entity will power almost 70bn engagements per year. Sinch will build upon a customer base includes many of the world’s best-known 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 18bn 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 292bn carrier messages. Cloud Solutions for Enterprises spans products for contact centre 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,” said Sinch CEO, Oscar Werner. “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."

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

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