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MessageBird To Buy Email Platform SparkPost For $600 Mln, Raises $800 Mln In New Funding

Dutch communications software company MessageBird Wednesday said it has agreed to buy commercial email platform SparkPost for $600 million in cash. Further, the company said it has raised fresh funding of $800 million in order to finance the acquisition.

The acquisition of SparkPost will help MessageBird, which is more active in Europe and Asia to gain a foothold in the American market.

Commenting on the deal, MessageBird Chief Executive Officer Robert Vis said, "So this is as much for us about the technology around SparkPost as it actually is for us to have market entry into the United States with a significant workforce instead of having to build that from scratch."

With the takeover of SparkPost, MessageBird said that it has access to "predictive email intelligence," and important clients like JP Morgan, PayPal, Disney, Zillow, Adobe, LinkedIn and Pinterest among others.

The $800 million new funding is an extension of its $200 million Series C round, which was announced last October, which now amounts to around $1 billion.

In October 2020, MessageBird had announced the $240 million Series C on a $3 billion valuation. The company said that while $1 billion has been raised, the round has not closed.

MessageBird said that Eurazeo, Tiger Global, BlackRock and Owl Rock participated in the extension along with Bonnier, Glynn Capital, LGT Lightstone, Longbow, Mousse Partners and NewView Capital. Existing investors such as Accel, Atomico and Y Combinator also participated in the extension. The company said that the mix is 70 percent equity and 30 percent debt.

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