Email vendor consolidation continues apace with the announcement that Sinch AB, cloud communications provider for mobile engagement, is acquiring Pathwire -- an email delivery platform that includes the Mailgun, Mailjet, and Email on Acid brands -- for roughly $1.925 billion.
This price includes $925 million in cash and 51 million new shares in Sinch.
With this acquisition, Sinch’s annualized revenue run rate will be $2.3 billion, and the employee headcount will grow to 4,000.
The purchase -- coming three months after Pathwire’s own acquisition of Email on Acid -- establishes Stockholm-based Sinch as one of the few global CPaaS providers that can deliver quality at scale across messaging, voice and transactional and marketing email, claims Oscar Werner, Sinch CEO.
The move also occurs just two weeks after the announcement that Intuit is acquiring Mailchimp for $12 billion.
Pathwire’s customers include such brands such as Lyft, Microsoft, Iterable, DHL and Kajabi.
Mailgun is a product for developers seeking to incorporate automated email messages into workflows through APIs.
Mailjet offers a drag-and-drop email builder and suite of APIs that allows users to engage with customers through the entire lifecycle of an email.
Email On Acid’s software-as-a-service allows users to view how emails will render in Gmail, Yahoo and other email platforms, and via mobile desktop and the web, and it also provides analytics.
The transaction is subject to the usual closing conditions, including merger-control filing to the U.S. Federal Trade Commission and Department of Justice.