The deal is very large in its own right, but also continues to set up Sinch as a (maybe “the”) key competitor to Twilio. The U.S.-based communications API giant acquired Sendgrid — another major email API provider that, like Pathwire’s products, is popular with developers — for $2 billion in 2018. That was an all-stock deal.
Pathwire’s products cover a few different bases, however, which is what makes it a compelling buy for Sinch. Mailgun is its big developer-focused API play in cloud-based communications. Mailjet, meanwhile is a little more accessibility for less technical people, giving them the option to use drag-and-drop functionality to integrate the email APIs. Email on Acid is another step in that low-code direction, giving its users further features to ensure consistency of appearance across different delivery platforms and so on.
It also underscores the massive consolidation at work at the moment in this sector. Even Pathwire itself is an example of that. Prior to this exit, it was owned by Thoma Bravo and was itself an acquirer of substantial businesses operating in the same general category of email-as-a-service, with its latest acquisition, of Email on Acid, announced as recently as June of this year.