MessageBird Acquires SparkPost for $600M - TechCrunch

MessageBird Expands with SparkPost Acquisition and Funding Extension

MessageBird, a Netherlands-based communications platform, has made significant strides today with two major announcements. The company secured an $800 million extension to its previously announced $200 million Series C funding round from last October.

Acquisition of SparkPost

Subsequently, MessageBird utilized $600 million of this extension to acquire SparkPost, a prominent email marketing platform. This brings the total value of the company’s Series C round to a minimum of $1 billion.

According to MessageBird CEO Robert Vis, while the company already possessed email capabilities, the opportunity to integrate the world’s largest email provider proved irresistible.

“We define ‘largest’ in terms of interaction volume – specifically, the sheer number of emails delivered,” Vis explained. “SparkPost handles approximately 5 trillion emails annually. Crucially, they excel at delivering high-volume emails reliably when it’s most critical.”

Strengthening U.S. Market Presence

The integration of SparkPost will allow MessageBird to establish a more robust presence in the U.S. market, where it has historically been less prominent, primarily operating in Europe and Asia.

“This acquisition provides us with both the technology of SparkPost and a significant existing workforce within the United States,” Vis stated. “This eliminates the need to build a substantial U.S. operation from the ground up.”

Synergies and Expanded Capabilities

Rich Harris, CEO of SparkPost, views the deal as a catalyst for expanding SparkPost’s reach across multiple communication channels already available on the MessageBird platform, creating a more powerful combined entity.

“Joining forces with MessageBird will enable us to deliver enhanced value to our customers through all forms of digital communication,” Harris announced.

Vis concurred, highlighting the potential to cross-sell MessageBird’s diverse services to SparkPost’s customer base. “SparkPost currently focuses solely on email. We can now offer their clients access to texting, Instagram messaging, WhatsApp, and Apple Business Chat. We are enthusiastic about leveraging this opportunity to broaden our messenger product offerings.”

Funding Details

MessageBird initially announced its $240 million Series C round at a $3 billion valuation last October. The recent $800 million extension elevates the total round to approximately $1 billion.

A company spokesperson clarified that the round is still finalizing, and the $1 billion figure is an estimate. The announcement is being made proactively to comply with regulatory requirements related to the SparkPost acquisition.

Investors in the extension include Eurazeo, Tiger Global, BlackRock, Owl Rock, Bonnier, Glynn Capital, LGT Lightstone, Longbow, Mousse Partners, and NewView Capital, alongside existing investors like Accel, Atomico (who led the Series A and B rounds), and Y Combinator. The funding structure comprises 70% equity and 30% debt.

Recent Acquisitions and Platform Expansion

This acquisition follows two other recent purchases: 24Sessions, a video meeting startup, and Hull, a synchronization technology company, both acquired last month.

MessageBird also acquired Pusher, a push notification company, in January. These strategic acquisitions demonstrate MessageBird’s commitment to rapidly expanding its platform capabilities using the capital raised in its Series C round.