Swedish tech M&A machine risks sputtering - Reuters

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Renaud Georges, a retired teatcher, shows a text message on his mobile phone which reads "The vaccination COVID-19 center CH Cambrai has canceled your appointment" during an interview with Reuters in Ribecourt-la-Tour near Cambrai, amid the coronavirus disease (COVID-19) outbreak in France, January 29, 2021.

LONDON, Sept 30 (Reuters Breakingviews) - No one can accuse Sinch (SINCH.ST) Chief Executive Oscar Werner of phoning it in. The boss of the $14 billion company, whose software allows Uber, Tinder and others to text and email their customers, on Thursday announced his fourth deal since February. He’s buying email-sending specialist Pathwire for a $1.9 billion enterprise value. It should allow Sinch to offer more customised services over what remains the world’s most popular digital-communications medium, while also introducing the company to more potential startup customers.

Yet gobbling up so many companies so quickly risks acid reflux. The total enterprise value of Sinch’s announced acquisitions over the last seven months is more than $4 billion. Werner already has a team of 100 people working on M&A integration, according to a person familiar with the matter. After rising almost five-fold in 2020, Sinch’s share price has been more pedestrian this year. It’s currently trading in line with its levels in mid-February, when Werner kicked off his buying spree. Investors are in wait-and-see mode. (By Liam Proud)

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Editing by Ed Cropley and Karen Kwok

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

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