The cloud communications platform Sinch has announced that it has entered into a definitive agreement to acquire SAP’s communications unit SAP Digital Interconnect (SDI) in its second acquisition exceeding $100m since late March.

Sinch will acquire all assets and IP belonging to SDI for $250m on a cash and debt-free basis.

SDI provides cloud-based communications products and the unit serves more than 1,500 enterprise customers throughout the world. 

Following regulatory approval, the combined entity will power almost 70bn engagements per year as Sinch will build upon a customer base which includes many of the world’s most valued brands including technology companies, banks, payment gateways, retail brands and mobile operators.

Sinch and SDI

SAP Digital Interconnect is made up of three segments: Programmable Communications, Carrier Services and Cloud Solutions for Enterprises. Programmable Communications powers omnichannel customer engagement through SMS, push, email, WhatsApp, WeChat and Virber, Carrier Services includes a range of business-critical services to mobile operators such as products for person-to-person messaging, reporting and analytics and Cloud Solutions for Enterprises spans products for contact centers and critical event management.

The deal will significantly strengthen Sinch’s customer facing operations and product and engineering resources in the US. It will also give the company a larger presences in the Bay Area where SDI is headquartered while growing the company’s business in Europe, Asia-Pacific and India.

In a blog post, CEO of Sinch, Oscar Werner explained how the deal will strengthen the company’s direct connectivity on a global scale, saying:

“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. The transaction strengthens our direct connectivity globally. Plus, it enables us to expand and accelerate a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics.”

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