SAP sells telecom division Digital Interconnect for 225 million

SAP sells telecom division Digital Interconnect for 225 million

SAP is selling its telecoms division Digital Interconnect to Sinch for 225 million euros. The announcement of the acquisition follows previous rumours about SAP’s intention to sell the service.

Digital Interconnect has been part of SAP since 2010, following the acquisition of Sybase for 5.8 billion dollars. SAP did not disclose why it wanted to get rid of Digital Interconnect. SAP board member Thomas Saueressig said in a statement that “given Sinch’s innovation and investment strategy in the field of cloud platforms, the board of SAP is pleased with the new owner of Digital Interconnect.”

Swedish company Sinch, which acquires Digital Interconnect, sells cloud services to large enterprises. The service is focused on efficient customer service. For Sinch, it is the second acquisition in a short period. In March, it bought the Brazilian start-up Wavy AB, which focuses on messaging.

Most customers are from the telecom sector, where the software is used to send e-mails and text messages to customers with, for example, information about their data bundle. In addition, Digital Interconnect can also be used to set up customer service.

According to SAP, billions of messages are sent every day via Digital Interconnect for more than 1.500 business customers. Digital Interconnect’s annual turnover is around 250 million dollars. The profit in 2019 was approximately 50 million dollars.

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