MessageBird acquires SparkPost for $600M using $800M Series C extension
MessageBird, a communications platform out of the Netherlands, had a busy day today with two huge announcements. For starters, the company got an $800 million extension on its $200 million Series C round announced last October. It then applied $600 million of the extension to buy email marketing platform SparkPost. The company's C round now totals at least $1 billion.
Let's start with the acquisition. MessageBird CEO Robert Vis says his company had an email component prior to the acquisition, but the chance to pick up the largest email provider in the world was too good to pass up.
If you talk about infrastructure, we're defining largest [...] as a matter of interactions, so basically the amount of emails sent. SparkPost sends about 5 trillion emails a year. And the second thing that's very important to us is to be able to send high scale emails when it's really critical," Vis told me.
With the company in the fold, it enables MessageBird, which has mostly been in Europe and Asia, to get a stronger foothold in the U.S. market. So this is as much for us about the technology around SparkPost as it actually is for us to have market entry into the United States with a significant workforce instead of having to build that from scratch," Vis said.
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Rich Harris, CEO of SparkPost sees the deal as a way to expand SparkPost to multiple channels already available on the MessageBird platform and be a much more powerful combination together than it could have been alone.
By joining forces with MessageBird, we will be able to bring broader, deeper value to all of our customers through any digital communications," Harris said in a statement.
Vis agrees saying it gives his company the opportunity to upsell other MessageBird services to SparkPost customers. SparkPost obviously only offers email. We can offer SmartPost customers way more channels. We can offer them texting, Instagram, WhatsApp or Apple Business Chat. So we feel very excited about leveraging them to go sell much more broad messenger products to their customers," Vis said.
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MessageBird announced its $240 million Series C on a $3 billion valuation last October. The company's whopping $800 million extension brings the round to around $1 billion. It's worth noting that the round isn't completely closed yet, so that's not an official figure.
The round isn't completely closed yet as we are still waiting on some of the funds to come in, so we cannot give you 100% final figures on the round, but we can say with confidence that the round will close at $1B or slightly higher," a company spokesperson explained. It is announcing the funding before everything is 100% done due to regulatory requirements around the acquisition.
Eurazeo, Tiger Global, BlackRock and Owl Rock participated in the extension along with Bonnier, Glynn Capital, LGT Lightstone, Longbow, Mousse Partners and NewView Capital, as well as existing investors such as Accel, Atomico (they led the Series A and B rounds) and Y Combinator. The mix is 70% equity and 30% debt, according to the company.
Today's acquisition comes on the heels of two others just last month when the company announced it was acquiring video meeting startup 24Sessions and Hull, a synchronization technology startup. The company also acquired Pusher, a push notification company in January, as MessageBird is using its Series C cash to quickly expand the platform.
MessageBird, the omnichannel platform-as-a-service,' raises $200M Series C at $3B valuation