Sinch, which specialises in cloud communications for mobile customer engagement, has entered into a definitive agreement to acquire TWW do Brasil for BRL 180.750m (£35.7m).

Founded in 1996, TWW is Brazil’s third largest SMS connectivity provider. The company serves more than 3,000 businesses,, including many of Brazil’s leading enterprises in the banking, retail and education sectors. Messaging volumes are continuously increasing and in 2018, TWW delivered 3.4bn messages on behalf of its customers. The company employs 37 people in São Paulo, Brazil.

“Sinch has won the trust of some of the worlds largest enterprises through high-quality message delivery and international reach,” said Sinch CEO, Oscar Werner. “The acquisition of TWW further strengthens this value proposition and gives us domestic presence in a rapidly expanding, dynamic growth market.”

With a population of 210 million, Brazil is the largest country in Latin America by population, GDP, and geographical size. It is the fifth most populous country in the world and is now seeing a rapid uptake in smartphone penetration and mobile internet usage. Customer engagement through mobile messaging continues to gain popularity, and Sinch said a rapid uptake of new technologies presents opportunities for the company to offer its broader portfolio of next-generation messaging, voice and video to TWW’s customers.

In 2018, TWW recorded revenues of BRL 134m, gross profit of BRL 35m, and EBITDA of BRL 17.5m. 43m. The total price paid by Sinch implies an EV/EBITDA-multiple of 8.9x based on expected adjusted EBITDA for the full year 2019. The transaction is expected to close in the second half of October 2019 and will be financed using Sinch’s available credit facilities.