MessageBird, one of Europe’s quickest developing software companies, said on Wednesday it had consented to purchase email giant SparkPost for $600 million in a deal that will increase its sales by around half and grow its client base in the United States.
MessageBird Will Finalize The Deal With SparkPost Soon
MessageBird likewise announced one of the biggest financing rounds for an European tech startup on record to pay for the deal, raising an extra $800 million from investors including Eurazeo, Tiger Global and Owl Rock. MessageBird, a cloud communications business now and then compared to Twilio, assists corporations with getting sorted out and oversee communications with customers that might be switching between smart phone messaging apps, video conferencing tools, web chats, and voice calls at various occasions. SparkPost, the biggest sender of business-to-customer emails, assists companies with sending and dissect their email communications.
MessageBird CEO Robert Vis said the deal would give the company access to SparkPost’s U.S. customer base while SparkPost’s product would improve its contributions to customers in the remainder of the world. “This will put a grin on the face of my sales team,” he said in a phone meet. The deal will increase the group’s combined sales to $500 million based on their latest financial years, he said. In March, Reuters announced that MessageBird’s 2020 sales had passed $300 million after solid development in the midst of the coronavirus pandemic. To finance the deal, MessageBird added $800 million to a past $200 million “series C” subsidizing round in October 2020, esteeming MessageBird at $3.4 billion, Vis said.
The SparkPost transaction is expected to close this quarter, forthcoming regulatory approval, the companies said. The acquisition will be the fourth in the past half-year for MessageBird, after it burned through $100 million to purchase France’s Hull.io, Britain’s Pusher, and 24sessions of the Netherlands. MessageBird has said it would be prepared for an IPO this year, yet Vis said it had not decided whether to look for a listing, and hadn’t hired banks. Among MessageBird’s 15,000 customers are Uber, Domino’s, Telegram, Lufthansa, Heineken and SAP. SparkPost customers include the New York Times, Zillow, Adobe and Booking.com.