Sinch to acquire SAP Digital Interconnect for €225m

Sinch acquisition of SAP Digital Interconnect : Swedish cloud computing services provider Sinch has agreed to acquire SAP Digital Interconnect (SDI), a unit within enterprise resource planning software provider SAP for €225 million.

SAP Digital Interconnect provides cloud-based communications products and caters to over 1,500 enterprise customers across the world. Its customer base is said to include several valued brands, including major technology firms, banks, payment gateways, mobile operators, and retail brands.

Commenting on Sinch acquisition of SAP Digital Interconnect, Oscar Werner – Sinch CEO said: “Sinch and SAP both recognize the power of cloud technology to drive business transformation and deliver a superior customer experience. With SDI 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.”

SAP Digital Interconnect is made up of three segments – programmable communications, carrier messaging, and enterprise solutions.

Programmable communications includes its enterprise-targeted API-based offering for omnichannel customer engagement via SMS, push, email, WhatsApp, Viber, and WeChat.

Last year, SAP Digital Interconnect is said to have processed more than 18 billion enterprise messages.

Sinch acquisition of SAP Digital Interconnect. Image courtesy of Sinch.

Carrier messaging includes a variety of business-critical services offered to mobile operators. These include products for person-to-person messaging, reporting, and analytics.

Last year, SAP Digital Interconnect is claimed to have processed over 292 billion carrier messages.

On the other hand, enterprise solutions span products for contact center which include public cloud solutions, and critical event management.

Thomas Saueressig – member of the Executive Board of SAP, responsible for SAP Product Engineering, commenting on Sinch acquisition of SAP Digital Interconnect, said: “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.”

The closing of the deal, which is subject to regulatory approvals from competition authorities across multiple jurisdictions and other customary closing conditions, is likely to occur in the second half of this year.

Sinch had appointed Handelsbanken Capital Markets as the financial advisor for the transaction, while K&L Gates is the legal advisor.