SAP has agreed to sell the SAP Digital Interconnect group to Sinch AB for EUR 225 million on cash and debt-free basis.
Sinch has a platform for messaging, voice and video. SAP’s interconnect services group offers cloud-based communications products and serves more than 1,500 enterprise customers.
The combined entity will power nearly 70 billion engagements per year.
Sinch will build on a global customer base that represents many of the world’s most-valued brands, including top technology companies, banks, payment gateways, retail brands and mobile operators.
SAP Digital Interconnect consists of three segments. Programmable Communications powers omnichannel customer engagement through SMS, push, email, WhatsApp, WeChat and Viber. In 2019, this business processed 18 billion messages on behalf of its enterprise customers.
Carrier Services includes a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics. In 2019, SDI processed more than 292 billion carrier messages.
Cloud Solutions for Enterprises spans products for contact center and critical event management.
The deal significantly strengthens Sinch’s customer facing operations and product and engineering resources in the United States and gives the company a larger presence in the San Francisco Bay Area where SAP Digital Interconnect is headquartered. It also grows the company’s business in Europe, the Asia Pacific region and India.
“With SAP Digital Interconnect 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,” said Oscar Werner, CEO of Sinch.
SAP Digital Interconnect is a leader in its area, showing profitable growth and reaching 99 percent of the world’s mobile subscribers.
On March 26, Sinch announced its intention to acquire Wavy in a deal valued at $119 million.