Pathwire

Pathwire is a developer of e-mail APIs and e-marketing solutions that enable companies to solve complex communication problems.

History

2021: Sinch bought Pathwire

On September 30, 2021, Sinch, a cloud communications developer for mobile customer interaction, announced an agreement to acquire Pathwire. Under the terms of the agreement, Sinch will pay $925 million in cash and $51 million in new Sinch shares. This corresponds to the company's value of about $1.9 billion. Closing the transaction is subject to normal closing conditions, including filing merger control documents with the Federal Trade Commission and the U.S. Department of Justice.

Pathwire provides a best-in-class email delivery platform for transactional and marketing email. Pathwire, designed to eliminate the complexities associated with the most commonly used digital communication channel in the world, ensures that the right messages are delivered to the right person at the right time. More than 100 thousand companies use Pathwire products to interact with their customers, including such large brands as Lyft, Kajabi, Microsoft, Iterable and DHL.

Sinch acquired Pathwire

The acquisition of Pathwire means that Sinch becomes one of the very few global providers in the field of communication platform as a service (CPaaS). This will ensure high quality on a scale of all the main digital communication channels that companies use to interact with their customers.

Each form of digital communication has its own unique advantages and to ensure high quality on a scale, requires both extensive technical capabilities and deep knowledge in the subject area. Together with Pathwire, we will be able to offer a best-in-class suite of messaging, voice and email products that will allow companies and developers to create unparalleled digital experiences with their customers, "comments Sinch CEO Oscar Werner.

Pathwire's offering centers around three main products:

• Mailgun offers powerful APIs that enable developers to integrate automated email messages into products and workflows.
• Mailjet offers a drag-and-drop email designer and a set of APIs that allow marketers to increase customer engagement and maximize the return on marketing investments.
• E-mail on Acid further improves delivery rates with an automated pre-deployment checklist and ensures that each e-mail message is displayed well across email providers and devices.

The deal is expected to generate significant synergistic revenue from cross-sales of Sinch and Pathwire products to each other's customer base. After the deal closes, Pathwire will also be able to leverage Sinch's already existing trading positions in 47 international markets to drive further growth at the expense of new corporate customers. According to estimates, one-time integration costs will amount to about $8.5 million until March 2023. The deal is expected to close by the end of 2021.^[1]

Notes