Industry analysts have noted that companies can’t seem to get enough of communications platform as a service (CPaaS) and, aiming to cash in on the hot market, cloud CPaaS solutions provider Vercom claims to have reached a new milestone in its expansion on the international market with the acquisition of MailerLite.
MailerLite, a global provider of tools for email marketing and communication, began operation in 2010, formed from a company that had its origins in a web design agency. It now comprises 130 designers and developers living and working in 40 countries. MailerLite operates mainly in the US and Western Europe, which together account for more than 70% of the company’s revenue.
The company has more than 38,000 clients in 180 markets and employs about 100 people in 30 international locations. Over the past three years, its average annual revenue growth was 43%, with a gross margin of PLN45m (£8.1m) in 2021.
For its part, Poland-based Vercom develops global CPaaS solutions to enable companies to build and grow lasting relationships with their audiences across multiple communication channels, allowing them to automate and scale communication processes, while maintaining deliverability and efficiency in a secure and reliable manner. Currently, about 20,000 companies use Vercom’s services, including Ikea, American Express, DHL, Coca-Cola and BNP Paribas.
In April 2021, Vercom launched an initial public offering (IPO), in which it raised PLN180m. The amount raised, together with debt financing, will be fully spend on acquisitions. In July 2021, the organisation acquired two companies for a total of about PLN40m – Polish email marketing company FreshMail and PushPushGo, said to be a leader in the CEE region’s push communications market. Vercom’s investment in MailerLite completes the stage of investing the IPO funds, and begins a new phase in the development of both entities.
The acquisition also enables the company to nearly triple its number of clients from about 19,000 currently to around 57,000 and ensure presence in 180 markets. At the same time, about 100 specialists from 30 international locations will join the Vercom team, providing efficient service to global portfolio of clients in all time zones.
The transaction is valued at around €84m, making it the largest acquisition of a foreign entity by a Polish company so far this year, and one of the largest acquisitions in the technology sector in recent years, the company claimed.
“We are consistently implementing a strategy that aims to strengthen our presence on the international market,” said Krzysztof Szyszka, CEO at Vercom. “Our aim was to find a reliable partner, thanks to whom we could significantly accelerate implementation of these plans. MailerLite is a recognisable brand that enjoys great popularity among business customers around the world. It has a diversified portfolio of customers, dominated by entities from the attractive markets of the US and Western Europe.
“It also has an international team of specialists in key locations such as San Francisco, New York and Dublin. The acquisition of MailerLite opens up entirely new growth opportunities ahead of us. With impetus, we are joining the global CPaaS players, such as Twilio and Sinch. This is a milestone in the development of the company.”
MailerLite CEO Ignas Rubežius added: “We are looking forward to working with Vercom. We have similar global ambitions and, together, we will achieve our goals even faster. We will be jointly building our value and developing our services. Thanks to Vercom’s technology, we will be able to offer our customers full multichannel capabilities.
“We also strongly count on Vercom’s knowhow in the area of transactional communication. This will allow us to further increase the attractiveness of our services and strengthen our competitive position on the global market.”