Cloud communications company, Sinch, has entered into a definitive agreement to acquire ACL Mobile Limited for a total cash consideration of INR 5,350 million which equates to £56m GBP.
Founded in 2000, ACL Mobile is a provider of cloud communications services in India and Southeast Asia. Its platform enables businesses to interact with their customers through multiple channels including SMS, voice, email, IP messaging, and WhatsApp. The company serves more than 500 enterprise customers and is particularly successful in the Banking and Financial Services industry. Leading financial institutions that rely on ACL technology include HDFC Bank, ICICI Bank, Kotak and IndusInd Bank.
Customers in other segments include a wide range of businesses such as Amway, Flipkart, MakeMyTrip and OLX. The company employs 288 people with headquarters in Delhi and overseas offices in Dubai (UAE) and Kuala Lumpur (Malaysia).
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.
India is the world’s second-largest mobile market with a population exceeding 1.3 billion. It is a fast-growing, mobile-first economy that benefits from rapid digitalization and rising smartphone penetration. Economic growth and government initiatives for greater digital inclusion are also driving increased use of financial services, a development that fuels demand for transaction notifications via SMS.
Beyond exposure to a vast and expansive domestic market, the acquisition of ACL Mobile also adds further reach to Sinch’s global Tier 1 Super Network. Sinch can leverage ACL’s direct connections to mobile operators in India, Malaysia and UAE and offer end-to-end connectivity, without unnecessary middlemen, to demanding global businesses around the world.
Sinch’s acquisition trail
On April 1, Sinch closed the acquisition of Chatlayer for a total cash consideration of EUR 6.9 million. This corresponds to SEK 73 million at the current exchange rate.
On March 26, Sinch announced the acquisition of Wavy for a cash consideration of BRL 355 million and 1,534,582 new shares in Sinch. The cash component corresponds to SEK 663 million at the current exchange rate. The transaction is subject to regulatory approval and is expected to close in H2 2020.
On May 5, Sinch announced the acquisition of SAP Digital Interconnect (“SDI”) for a total cash consideration of EUR 225 million. This corresponds to SEK 2,366 million at the current exchange rate. The transaction is subject to regulatory approval and is expected to close in H2 2020.
With ACL we gain critical scale in the world’s second-largest mobile market. We gain customers, expertise and technology and we further strengthen our global messaging product for discerning businesses with global needs.
Sinch CEO, Oscar Werner