SoftBank invests USD699m in Swedish cloud communications developer Sinch

3 Dec 2020

Japanese conglomerate Softbank Group Corp has ploughed significant cash into Swedish software developer Sinch, which plans to use the cash injection to fund its own M&A programme, Telecoms.com reports. SoftBank participated in Sinch’s share offer as well as snapping up existing shares from the firm’s larger shareholders (including its co-founders), for a total consideration of around SEK5.94 billion (USD699 million). Sinch has developed a successful cloud communications platform and says the proceeds of the share issue will mainly be used ‘to increase the financial flexibility for new acquisitions,’ noting that it ‘is continuously evaluating potential acquisitions’. Telecoms.com points out Sinch has announced two takeover deals worth in excess of USD100 million in the past eight months, including the USD119 million acquisition of Brazil-based CRM outfit Wavy in March, and the purchase of SAP Digital Interconnect via a cash and debt-free deal worth USD270 million roughly six weeks later.

Japan, SoftBank Group Corp