Sweden-based Sinch AB, which provides companies with cloud communications for engaging consumers on their mobile devices, has targeted India for the latest deal in an acquisition spree totaling $445 million so far this year.
Based in Stockholm, Sinch is a publicly traded company with a U.S. headquarters in Atlanta that houses more than 60 employees, including CEO Oscar Werner.
Sinch’s purchase of ACL Mobile for about $75 million will occur in two phases. The first deal closed in August, giving Sinch control of the majority of ACL’s shares.
ACL is highly complementary with Sinch, giving the latter a strong foothold in the country of 1.3 billion people, the world’s second largest mobile ecosystem, and the top market for WhatsApp, with more than 400 million users of the Facebook-owned messaging app. ACL also has direct connections to 350 mobile operators in India, as well as in Malaysia and the United Arab Emirates, where it also has offices.
“I’m tremendously pleased that ACL is now a part of Sinch, which positions us for growth in one of the world’s most dynamic growth markets,” said Mr. Werner, the CEO, in a news release.
The move also comes as India’s financial sector continues to grow, with digital and mobile payments growing in popularity. Based in Delhi since 2000, ACL has 500 enterprise customers including most India’s largest private banks, which have stringent regulatory and privacy requirements that ACL’s Axiom platform is designed to satisfy, according to a Sinch investor presentation. Axiom meets the Reserve Bank of India requirements for confirming electronic transactions by SMS, and the product accounts for about 40 percent of the 47 billion messages ACL sent in the last 12 months on behalf of businesses.
ACL has 288 employees; founder and CEO Sanjay Goyal will be staying on after the acquisition.
Sinch’s earlier deals this year include a purchase of SAP Digital Interconnect for $250 million, Brazil’s Wavy for $119 million and Belgium’s Chatlayer for $6 million.