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Sinch enters €225 million definitive agreement to acquire SDI unit

Sinch enters €225 million definitive agreement to acquire SDI unit
Sinch enters €225 million definitive agreement to acquire SDI unit

Sinch, a telecommunications and cloud communications platform, has reportedly formed a definitive agreement to acquire a unit within SAP SE, SAP Digital Interconnect (SDI). The total cash consideration of the agreement is €225 million on a cash & debt-free basis.

SDI provides cloud-based communications solutions as well as serves over 1,500 enterprise customers across the globe. Its customers include global valued brands, including mobile operators, retail brands, payment gateways, banks, and top technology companies.

According to Oscar Werner, CEO of Sinch, the company and SAP acknowledge the potential of cloud technology in driving business transformation as well as delivering a superior experience to customers. SDI will become a valued partner for Sinch in scaling the focus and capabilities to enhance the engagement of businesses with global customers.

Thomas Saueressig, member of SAP’s Executive Board, has stated that SAP Digital Interconnect has shown profitable growth as well as reached 99% of the mobile subscribers globally. He commented on the company’s  anticipation to welcome Sinch, with innovation & investment strategy in the cloud communication platforms. Sinch has the capability to unleash further growth of SDI.

SDI consists of 3 segments namely Enterprise Solutions, Programmable Communications, and Carrier Messaging. Programmable Communications include enterprise-targeted offerings based on API to ensure omnichannel customer engagement through Viber, WeChat, WhatsApp, email, push, and SMS. Carrier Messaging includes various business-critical services offered to mobile operators, including solutions for person-to-person analytics, reporting, and messaging. On the other hand, Enterprise Solutions spans various products for contact centers, such as public cloud solutions, as well as critical event management.

The net cost synergies of the combination of SDI and Sinch from various sources are anticipated to reach €11 million on a preliminary basis and reach a full run-rate in the 2022 financial year. Integration and one-off carve-out costs of €6-8 million are also expected over the same fiscal year. The acquisition has been financed by using the available credit facilities and cash at hand of Sinch.

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for and a few other distinguished news platforms, pertaining to business and finance.