VIENNA, Va. & ATLANTA–(BUSINESS WIRE)–Kaleyra, Inc. (NYSE: KLR) (KLR WS), a rapidly growing cloud communications software provider delivering a secure system of application programming interfaces (APIs) and connectivity solutions in the API/Communications Platform as a Service (CPaaS) market, today announced that it has closed the previously announced transaction under which Kaleyra would acquire mGage, a leading global mobile messaging provider, for $215 million in cash and Kaleyra common stock.
mGage is a best-of-breed, Tier 1 aggregator, enabling a diverse range of enterprise to effectively engage with their customers leveraging the power of mobile messaging across a variety of use cases. mGage serves its customers through its enterprise-grade, cloud-based campaign management platform, Communicate Pro, and its API solution, Connect to provide mobile messaging across multiple channels such as SMS, MMS, Push, and RCS.
“We are excited to have closed the mGage transaction and look forward to competing globally as a combined entity. This acquisition redefines Kaleyra by uniting two world-class enterprise cloud communications companies, creating a top-5 global CPaaS platform with a global footprint of diversified and balanced products,” commented Dario Calogero, Kaleyra’s Founder and Chief Executive Officer. “This combination will accelerate and expand Kaleyra’s opportunity to serve the CPaaS market which is expected to reach $26 billion in 2025 with a compound annual growth rate of 35%1 and the broader A2P Enterprise messaging market which is expected to reach $78 billion in 2022.2”
This combination provides multiple benefits to Kaleyra’s customers.
Kaleyra will expand its network operator connections, which already cover more than 190 countries, and become one of only four companies providing direct connectivity to all US carriers. These enhanced global connections position Kaleyra as a stronger player in the messaging arena and provide significant cost synergies
From a go-to-market perspective, this acquisition is perfectly aligned with Kaleyra’s history of focused and disciplined acquisitions. This transaction makes Kaleyra a geographically balanced CPaaS company and vastly expands its existing US customer base to 31% of revenues on a pro forma basis.
The combination expands Kaleyra’s R&D footprint and strengthens its messaging portfolio with Google RCS/RBM while also enriching its offering of Enterprise Communication Analytics and Omnichannel Engagement Services. Kaleyra and mGage’s messaging portfolios are highly complementary and provide for immediate cross-selling opportunities across the existing combined customer base of over 3,800 customers.
Financial Outlook
Kaleyra expects mGage’s first month of results to have the following contribution to its financial outlook for the second quarter 2021, also provided on May 10, 2021:
- Second Quarter 2021 Guidance: Increase the revenue range by $10 – $11 million to $50.0 – $51.0 million.
Acquisition Details
Kaleyra acquired mGage for a total purchase price of approximately $215 million. mGage shareholders received cash in the amount of $195 million and 1,600,000 shares of Kaleyra common stock. In a related transaction, Kaleyra raised $200 million in senior unsecured convertible notes and sold 8,400,000 shares of common stock in a PIPE offering.
About Kaleyra Inc.
Kaleyra, Inc. (NYSE American: KLR) (KLR WS), is a global group providing mobile communication services to financial institutions, e.commerce, digital giants, software companies, logistic providers, healthcare and other large organizations worldwide. Through its proprietary platform, Kaleyra manages multi-channel integrated communication services on a global scale, consisting of messaging and instant messaging, push notifications, e-mail, voice services, and chatbots. Kaleyra’s technology today makes it possible to safely and securely manage billions of messages monthly with a reach to hundreds of MNOs including all tier-1 US carriers. For more information: https://www.kaleyra.com/.
