Twilio to become minority owner in Syniverse Technologies with $750M investment – ProWellTech

Syniverse Technologies, a company helping wireless operators move communications across public and private networks, announced an extensive partnership with Twilio this morning. Under the agreement, Twilio is investing up to $ 750 million to become a minority owner of the company.

The idea behind the partnership is to combine Twilio’s API communication skills with Syniverse’s cellular contacts to create this end-to-end communication system. Twilio’s strength has always been the ability to deliver communication like texts without a carrier relationship. This deal gives you access to that side of the equation.

James Attwood, Executive Chairman of Syniverse, undoubtedly saw the value of the two companies working together. “The partnership gives Syniverse access to Twilio’s extensive expertise in enterprise and API services, and offers the opportunity to continue building on Syniverse’s highly innovative portfolio of products that help wireless carriers and businesses improve communications for their customers.” Atwood said in a statement.

Today’s deal follows the $ 3.2 billion acquisition of the segment late last year as the company continues to look for opportunities to expand its markets. Will Townsend, an analyst at Moor Insight & Strategy covering the network and carrier markets, sees Twilio access to a wider range of technologies in this deal.

“Twilio [gets] Access to the major functions of Syniverse in massive industrial IoT and private 4G LTE and 5G cellular networks. Both are poised to move up significantly in light of the company’s recently found new access to licensed spectrum through recent C-band and CBRS auctions, ”said Townsend. He believes this will help Twilio reach parts of the business that are not wirelessly connected or where customers are faced with “a mix of solutions that don’t scale or distribute well”.

As it turns out, it’s no coincidence that the two companies come together like this. Twilio has been a Syniverse customer for some time, according to Chee Chew, Twilio’s chief product officer.

It’s an old-school company like Syniverse, founded in 1987, combining forces with a more modern approach to communication like Twilio, which provides developers with APIs to provide communication services within applications with just a few lines of code.

The Wall Street Journal, that brought the news According to reports, the company could go public later this year via SPAC, valued at between $ 2 billion and $ 3 billion. This would suggest that it hasn’t added much in value since the 2010 deal.

According to Holger Mueller, an analyst at Constellation Research, the SPAC offers an interesting additional component to the deal. “The soaring stock market is creating all kinds of new chickens, one of which is a SPAC, and that’s the financial opportunity Twilio is likely to be pursuing by investing in Syniverse. The more immediate benefit is that Twilio uses the messaging provider for its services. Let’s call it a partnership with investments upwards, ”said Müller.

According to Syniverse, “The company is one of the largest Private IP Packet Exchange (IPX) providers in the world, offering a range of networking solutions that excel in scenarios where seamless connections must be made across networks – either across multiple private networks or between public and private networks. “

The company is currently owned by the Carlyle Group Private equity firm that it bought for $ 2.6 billion in 2010. Twilio launched in 2008 and raised over $ 236 million before going public at $ 15 per share in 2016. The stock rose 3.82% in early trading, suggesting Wall Street approves the deal.

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