Old message media never die, they just get more sophisticated

© Flickr/cc-licence/Alvaro Ibanez

© Flickr/cc-licence/Alvaro Ibanez

  • Sinch has assembled a healthy collection of messaging firms and intends to provide high quality services across all the B2C digital comms channels
  • It’s just topped off its collection with a leading email delivery company for $1.9 billion
  • There’s plenty of life left in the old email dog yet

Sweden-based Sinch AB is on an acquisition roll. It had hardly given its accountants time to catch their breath following the very recent acquisition of German next-gen messaging company MessengerPeople for Є48 million, when it announced another buy today - email delivery specialist Pathwire, this time for a hefty US$1.9 billion. 

Sinch is no stranger to Є1 billion plus deals though. Earlier this year, it acquired SME messaging firm, MessageMedia, for $1.3bn and US voice network operator, Inteliquent, for $1.1bn. The company's spending on 15 acquisitions since the start of 2020 totals almost $3 bn.

So what gives? Why has Sinch assembled a collection of leading-edge messaging companies now topped off by the distinctly old school email player? 

Because the digital communications channel game is not a knock-out competition. Despite articles prophesying the demise of email because Generation Z is immersed in snappy messages and is apparently allergic to it, email is still alive and well and still cluttering up inboxes everywhere. Sinch with Pathfinder aims to make the corporate email experience more reliable and refined.

Research by Technavio estimates that the worldwide market for email delivery is worth $16 billion, 60 percent of which is transactional email delivered in response to an action by an end user, such as a booking confirmation. 

As with many things techno, digital communications media tend to be accretive. The challenge is knowing how to have them all work together efficiently to advance customer relationships, without driving those at either end of the exchange crazy (“Sorry caller, I lost you in the transfer, we’ll see if we can get it right this time.”) That’s where Sinch aims to make its mark. 

It says that with the acquisition of Pathwire it’s become one of the very few, global Communications Platform as a Service (CPaaS) providers to be able to deliver high quality services across all the main B2C digital communications channels. 

Pathwire fits into this framework because it provides what Sinch describes as ‘best in class’ email ‘deliverability’ - the email must get through.

“Every form of digital communications has its unique benefits, and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise“, comments Oscar Werner, Sinch CEO. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email.”

So what are the qualities that separates your Dad’s email and the new email systems all shiny and dripping with deliverability?

Sinch says cloud-based email services like Pathwire can guarantee that an email will reach its recipient as intended, with the minimal delay and that they will render “pixel perfect” on every device. 

Pathwire has three core products:

  • Mailgun offers powerful APIs that let developers integrate automated email messages into products and workflows. 
  • Mailjet offers a drag-and-drop email builder and suite of APIs for marketers to increase customer engagement and maximize marketing ROI. 
  • And the intriguingly-named Email on Acid improves deliverability rates, through an automated pre-deployment checklist. 

For the year ending December 31, 2021, Pathwire is expected to win revenues of $132 million and a Gross Profit of $104 million The business employs around 290 people and is headquartered in San Antonio, Texas.

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