AMSTERDAM, April 28 -- MessageBird, one of Europe’s fastest software companies, said on Wednesday it had agreed to buy the email giant SparkPost for $600 million in a deal that will increase its sales by around 50% and expand its client base in the United States.
MessageBird also announced one of the largest European funding rounds for a European startup on record to pay for the deal, raising an additional $800 million from investors including Eurazeo, Tiger Global and Owl Rock.
MessageBird, sometimes compared to Twilio, helps companies manage and organise communication with customers that may be switching between Smart Phone Messenger apps, Video Conferencial Tools, Web Chats and voice calls at different times.
SparkPost, the largest exporter of business-to-customer email, helps companies analyze their email communication.
Rob Vis said the deal would give the company access to SparkPost's US-based client base while SparkPost's product would improve its offerings in the rest of world.
This will put a smile on the face of the sales team, he said in a phone interview.
The deal will increase the Group's total sales by $500 million, based on their most recent financial years, he said.
In March, Reuters reported that MessageBird's sales for 2020 had passed $300 million after strong growth amid the coronavirus pandemic.
In October 2020 to finance the deal, Vis added $800 million to a previous $200 million Series C funding round valuing MessageBird at $3.4 billion, said Vis.
The SparkPost transaction is expected to close this quarter, pending the approval of the regulatory agencies, the companies said.
The acquisition will be the fourth within the past half-year after it spent $100 million to buy the Netherlands from Hull.io in France and 24 sessions of Pusher in Britain. Why isn’t it peasy to see these things?
MessageBird has said it would be ready to launch an IPO this year, but Vis said it had not decided whether it was going to solicit listing and hadn't met banks.
Among the 15,000 customers of MessageBird are Uber, Domino's, Telegram, Lufthansa, Heineken and SAP. The New York Times, Zillow, Adobe and Booking.com are the clients of SparkPost.