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Sinch adds email to CPaaS offering as it buys Pathwire

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Sinch, a global leader in cloud communications for mobile customer engagement, continues its expansion through acquisition rampage, entering into a definitive agreement to buy Pathwire, a leading cloud-based email delivery platform.

Sinch will pay the sellers a cash consideration of $925m and 51 million new shares in Sinch.

Pathwire provides an email deliverability platform for transactional and marketing email. Built to remove the complexities of the world’s most-used digital communications channel, and ensures that the right messages are delivered to the right person at the right time.

More than 100,000 businesses use Pathwire’s products to engage with their customers, including major brands such as Lyft, Kajabi, Microsoft, Iterable, and DHL. Research by Technavio estimates that the worldwide market for email delivery is worth $16bn. More than 60% of this amount relates to transactional email, which are delivered in response to an action by an end user, such as booking confirmations, receipts and password resets.

The acquisition of Pathwire means that Sinch becomes one of the very few, global CPaaS providers that can deliver leading quality at scale across all the main digital communications channels which businesses use to engage with their customers.

“Every form of digital communications has its unique benefits, and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise,” comments Oscar Werner, Sinch CEO. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email, that empowers businesses and developers to craft an unmatched, digital, customer experience.”

Businesses turn to cloud-based email service providers to avoid costly in-house solutions and to ensure that each message reaches its recipient as intended. Through its feature-rich email API, email testing tools, and accomplished deliverability services, Pathwire ensures that emails are received with minimum delay, that they are showcased in customers’ prime inbox, and that messages render pixel-perfect on every device and with every email provider.

Together with a highly efficient, online go-to-market model, these product strengths have allowed Pathwire to outgrow the competition and deliver consistently high growth and high profitability.

Pathwire’s offering is centered around three core products:

  • Mailgun offers powerful APIs that let developers integrate automated email messages into products and workflows. With unmatched deliverability rates, Mailgun is the preferred choice for developers looking to send, receive and track emails using a cloud-native, scalable infrastructure.
  • Mailjet offers a drag-and-drop email builder and suite of APIs that empower marketers to increase customer engagement and maximize marketing ROI. Its powerful tools cater for the entire life cycle of an email; from design and creativity to testing, deliverability, and analytics.
  • Email on Acid further improves deliverability rates, through an automated pre-deployment checklist, and ensures that every email message renders well across different email providers and devices.

“Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes. I’m proud of what the Pathwire team has accomplished, and I’m tremendously excited about this next step on our journey and the many opportunities we can unlock together,” says Will Conway, Pathwire CEO. “We are proud of what we accomplished with Will and the Pathwire team over the past few years, investing in product initiatives, leadership, and M&A, including the acquisitions of Mailjet and Email on Acid,” said Hudson Smith, a Partner at Thoma Bravo. “Sinch is the perfect strategic partner to support Pathwire and continue to build on its market-leading position as the email communications partner of choice for developers and marketers.”

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