SAP Digital Interconnect Soon to be Part of Sinch AB

SAP Digital Interconnect Soon to be Part of Sinch AB

SAP Digital Interconnect (SDI) is one of the Cloud Services offerings of SAP that promises to drive fundamental change with speed and stability to businesses through innovation, flexibility, elasticity, and simplification.

In the age of digital economy, SAP Digital Interconnect (SDI) has been striving to connect the “last mile” between enterprises, technology, customers, employees, and things securely and reliably through SMS, e-mail, push notification and social network channels. In the same context, Sinch AB, a Swedish telecom and cloud- communications services and solutions provider, has also been connecting businesses and people via its leading cloud communications platform delivering mobile messaging, voice, and video to promote personal engagement.

Sharing a common intention of fulfilling businesses’ digital transformation, Sinch has entered a definitive agreement to acquire all assets and IP of SDI. The acquisition amounting to a total cash consideration of EUR 225 million on a cash and debt-free basis is financed by Sinch’s cash on hand and available credit facilities. 

Oscar Werner, Sinch CEO said:

“Sinch and SAP both recognize the power of cloud technology to drive business transformation and deliver a superior customer experience. With SDI 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.”

As a trusted software provider to mobile operators, Sinch’s platform has been delivering business-critical solutions to many global companies. Since 2008, the company has remained profitable and has been fast-growing with a local presence in over 40 countries.

The Swedish company is in a comfortable position to continue and execute its growth strategy, both organically and inorganically, with its long-term focus on profitability and cash flow even in times of unfavorable macroeconomic conditions. With SDI’s 10% year-on-year revenue growth over the past two years, Sinch’s investment is on the right spot.

SDI offers configurable APIs that provide access to programmable digital interfaces and proven messaging channels to help businesses simplify and optimise connectivity, reduce network costs, and monetise the IoT and messaging services. The SAP entity provides cloud-based communications products to over 1,500 enterprise customers globally including top technology companies, banks, payment gateways, retail brands, and mobile operators.

Thomas Saueressig, member of the Executive Board of SAP SE and responsible for SAP Product Engineering commented:

“SAP Digital Interconnect is a leader in its area showing profitable growth and reaching 99 percent of the world’s mobile subscribers. Looking at Sinch’s innovation and investment strategy in the area of cloud communication platforms, we welcome them as the new owner of SDI. Sinch is perfectly positioned to unleash further growth potential we see in SDI.”

SDI has three segments namely Programmable Communications responsible for SDI’s enterprise-targeted API-based offering for omnichannel customer engagement through SMS, push, email, WhatsApp, WeChat and Viber; Carrier Messaging that includes a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting and analytics; and Enterprise Solutions that features products for contact center such as public cloud solutions, and critical event management.

SDI’s services for enterprises are:

  • SAP Contact Center 365
  • SAP email 365
  • SAP Live Link 365
  • SAP People Connect 365
  • SAP SMS 365, enterprise service
  • SAP Social Channels 365

 SDI’s services for developers include:

  • SAP Live Link 365

SDI’s Services for Mobile Network Operators are:

  • SAP SMS 365
  • SAP IPX 365
  • SAP Messaging Proxy 365

The transaction is expected to close by the second half of 2020 with Sinch agreeing to pay EUR 11 million as termination fee if the transaction is not completed and certain conditions are met.

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