Cloud communications company, Sinch, has entered into a definitive agreement to acquire Wavy, through the two legal entities Movile Internet Móvel S.A. and Wavy Global Holdings BV, for a total cash consideration of BRL 355 million and 1,534,582 new shares in Sinch which equates to $71m in cash and a total deal value $119m.
Wavy is part of Movile Group, an ecosystem of technology companies in Latin America, and has established itself as a leading business messaging provider in the region, leveraging this position to build a strong, next-generation, conversational messaging business. It is the second-largest messaging provider in Brazil and offers services in Mexico, Colombia, Peru, Chile, Argentina and Paraguay.
Sinch has forged a strategy to grow the company through both organic and inorganic means. A long-term focus on profitability and cash flow makes Sinch well placed to continue and execute this strategy also in times when overall macroeconomic conditions are unfavorable.
Wavy has commercial agreements with more than 50 mobile operators in Latin America and currently handles more than 13 billion business messages per year. Enterprise customers relying on Wavy’s SMS capabilities include financial institutions Caixa and CitiBanamex as well as Atento, the global Business Process Outsourcing provider.
A strong commitment to innovation has also seen Wavy develop a leading position in next-generation, conversational messaging over WhatsApp. Customers in this segment include Latin American food delivery leader iFood, beauty group Avon and ticket sales specialist Ingresso Rápido. This high-margin innovation business is now seeing year-on-year growth above 200 percent.
After the transaction has closed and won regulatory approval, Wavy CEO Eduardo Henrique will become a member of the Sinch senior management team.
Uniting Sinch and Wavy significantly strengthens our offering in next-generation messaging and expands our presence in Latin America. Our shared vision, greater scale and global outlook makes us uniquely well placed to succeed in the marketplace, innovate with our customers, and grow our business.
Oscar Werner, CEO, Sinch
Wavy is built on passion, innovation and a mission to make an impact on a global scale. Joining forces with Sinch lets us innovate together and truly transform how businesses engage with their customers. We are on a journey that has only just begun and look forward to the combined future of Sinch and Wavy.
Eduardo Henrique, CEO, Wavy