KLR - Kaleyra shares soar after acquiring mobile messaging provider mGage

Kaleyra (KLR) has signed a definitive agreement to acquire global mobile messaging provider mGage for $215 million in cash and stock.MGage's solution allows enterprises to communicate with customers through all mobile channels for a variety of use cases.“This combination will accelerate and expand Kaleyra’s opportunity to serve the CPaaS market which is expected to reach $26 billion in 2025 with a compound annual growth rate of 35% and consolidate the A2P Enterprise messaging market which is expected to reach $78 billion in 2022. We expect, on a pro forma basis, the new Kaleyra to generate more than $350 million in revenue for fiscal year 2021, increased scale, an enhanced margin profile and robust free cash flow,” says Kaleyra CEO Dario Calogero.KLR Shares are up over 20% pre-market to $18.40.Press release.

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Kaleyra shares soar after acquiring mobile messaging provider mGage