With the $215 million cash and shares transaction closed on 1 June, Kaleyra will expand its network operator connections to become one of only four companies providing direct connectivity to all US carriers.
Kaleyra currently covers more than 190 countries and after this deal and said that this acquisition makes it a "geographically balanced CPaaS company and vastly expands its existing US customer base" to 31% of revenues on a pro forma basis.
“We are excited to have closed the mGage transaction and look forward to competing globally as a combined entity," said Kaleyra's CEO and founder, Dario Calogero (pictured).
"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. 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,” Calogero continued.
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.
mGage offers 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.
Kaleyra said mGage’s messaging portfolio was "highly complementary" to its own and provided "immediate cross-selling opportunities" across an existing combined customer base of more than 3,800 customers.
Kaleyra said the combined companies would have an expanded R&D portfolio and strengthened messaging portfolio with Google RCS/RBM while also enriching its offering of Enterprise Communication Analytics and Omnichannel Engagement Services.
