Sweden's Sinch to buy Inteliquent in U.S. market push

Sinch has its sights set on becoming a bigger competitive threat in the U.S. cloud communications market.(Getty Images)

Sweden-based cloud communications and mobile messaging company Sinch AB announced that it had agreed to acquire U.S. based voice network operator Inteliquent in a $1.14 billion cash deal that will help Sinch grow its presence in the U.S. market.

The news release announcing the deal stated that Inteliquent “operates a fully redundant, geo-diverse, carrier-grade tier 1 network directly connected to every major telecom carrier and covers 94 percent of the U.S. population. The platform handles more than 300 billion minutes of voice calling per year and the company has registered more than 100 million active phone numbers on behalf of its customers.”

Sinch said the acquisition, which is expected to close in the second half of this year, will help to expand the Swedish firm’s Communications Platform as a Service (CPaaS) offering, while also giving it a strong foothold in the U.S. voice communications market. Sinch is partially backed by Japan’s Softbank, having announced last December a $690 million investment from Softbank, and has been on an M&A tear over the last year, acquiring five companies in the process.

Of particular use for Sinch will be Inteliquent’s API for enabling businesses to acquire phone numbers and embed voice calling into their own products or business processes. The company is seen as a direct competitor to fast-growing U.S. based cloud communications player Twilio, which also has an API-based approach and pushes platform-as-a-service offerings. Twilio just yesterday reported blockbuster fourth quarter earnings that included 65% revenue growth for the quarter.

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“Becoming a leader in the U.S. voice market is key to establish Sinch as the leading global cloud communications platform,” said Oscar Werner, Sinch CEO, in a statement.