Sweden-based Sinch is expanding its efforts in the U.S. with its latest acquisition of Chicago-based voice communications provider Inteliquent. The deal, which was announced Thursday, is valued at $1.14 billion.
It’s an accomplishment any time a Chicago company gets acquired for more than $1 billion, but this deal is actually Sinch’s fifth acquisition in the last year.
Sinch has developed a handful of communications APIs for things like video and voice calling, SMS, MMS, RCS, verification and more. The company has also designed an engagement platform to create mobile AI chatbots or text-based marketing campaigns. These technologies are useful for companies that want to incorporate things like text-based verification codes, personalized messaging for marketing purposes, communication via WhatsApp and more into their business model.
You’ve likely experienced tech similar to the kind Sinch creates if you’ve received an automated text after ordering something online or received a verification text after trying to log into an online account. These services are similar to those offered by its U.S.-based competitor Twilio.
Inteliquent specializes in voice communications, and is the largest independent voice communications provider in the U.S. The company has built APIs that allow businesses to incorporate voice-based calling into their products. It also allows these businesses to acquire dedicated phone numbers to tie to these services. This technology provides a valuable complement to Sinch’s own tech.
Inteliquent is connected to every major American telecom company, which means it can connect to 94 percent of the U.S. population. This is important because Sinch is specifically looking to expand in the United States. Sinch currently works with eight of the 10 largest tech companies in the world, all of which are headquartered in the U.S.
“Becoming a leader in the U.S. voice market is key to establish Sinch as the leading global cloud communications platform,” Sinch CEO Oscar Werner said in a statement. “Inteliquent serves the largest and most demanding voice customers in America with superior quality backed by a fully owned network across the entire U.S. Our joint strengths in voice and messaging provide a unique position to grow our business and power a superior customer experience for our customers.”
“We’re excited about the tremendous opportunities this combination unlocks, expanding the services we can provide to our customers,” Inteliquent CEO Ed O’Hara added. “Combining our leading voice offering with Sinch’s global messaging capabilities truly positions us for leadership in the rapidly developing market for cloud communications.”
Although the deal is subject to standard regulatory clearances, it’s expected to close in the second half of 2021.
-19.jpg)
