Kaleyra Inc., a cloud communications software provider delivering a secure system of application programming interfaces and connectivity solutions in the API/Communications Platform as a Service market, has signed a definitive agreement to acquire Mgage, a leading global mobile messaging provider for $215 million in cash and Kaleyra common stock.
Under the terms of the acquisition agreement, Kaleyra will acquire Mgage for a total purchase price of approximately $215 million, subject to adjustments. The consideration to mGage shareholders will consist of cash in the amount of $195 million and 1,600,000 shares of Kaleyra common stock.
“We are thrilled to welcome mGage, its customers, and the entire Mgage team to the Kaleyra family. Kaleyra and Mgage together are uniting two world class enterprise cloud communications companies to create a top-5 global CPaaS platform with a diversified and balanced product portfolio and geographical representation. On a proforma basis, in 2021 Kaleyra and Mgage will process over 50 billion transactions worldwide, with approximately 31% of revenue coming from North America, over 30% coming from Europe and the remainder evenly split between APAC and Latin America. This transaction makes Kaleyra one of the most prominent and geographically diverse CPaaS companies in the world, combining the Omnichannel Kaleyra platform with the complementary mGage footprint and top class customer portfolio,” commented Dario Calogero, founder and CEO Kaleyra.
Oppenheimer & Co Inc. served as exclusive financial advisor to Kaleyra, with DLA Piper LLP serving as legal counsel. Oppenheimer & Co Inc. served as exclusive placement agent for the convertible notes and PIPE transaction. Guggenheim Securities LLC served as exclusive financial advisor to mGage and Vivial, with Weil, Gotshal & Manges LLP and Akin Gump Strauss Hauer & Feld LLP serving as legal counsel.