By Dominic Chopping 
 

STOCKHOLM--Sweden's Sinch AB, a cloud communication services provider backed by Softbank Group Corp., said Wednesday that it has agreed to a 48 million-euro deal ($56.3 million) to buy MessengerPeople, a German software-as-as-service platform for conversational messaging.

The deal will see Sinch pay EUR33.6 million in cash and EUR14.4 million in the form of new shares in Sinch.

Founded in Munich in 2015, MessengerPeople offers a cloud-based software suite that helps businesses engage with their customers via messaging apps like WhatsApp, Telegram and Apple Business Chat (iMessage). Over 700 businesses use MessengerPeople applications, it added.

"Most businesses have yet to discover the benefits of conversational messaging, and together we are superbly placed to win in this market as uptake now begins to accelerate," said Sinch Chief Executive Oscar Werner.

In the year ending December 2021, MessengerPeople is expected to generate revenue of EUR5.1 million, gross profit of EUR4.5 million, and adjusted earnings before interest, tax, depreciation and amortization of EUR600,000, it said. The company has around 40 employees and is based in Munich, Germany.

The transaction is expected to close in the fourth quarter of 2021 and will be financed with a combination of new Sinch shares and Sinch's available cash at hand.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 22, 2021 02:57 ET (06:57 GMT)