Twilio, a customer engagement platform used by hundreds of thousands of businesses around the world, and Syniverse, a communications technology provider to leading carriers and enterprises, have announced that their strategic partnership has been finalized, with Twilio investing $750 million in common equity in Syniverse and the companies expanding their strategic and commercial partnership.
In February 2022, Syniverse opted to abandon its intention for a $2.85 billion reverse acquisition that would have resulted in the business being listed on the New York Stock Exchange (NYSE). Syniverse will remain as being majority-owned by the Carlyle private equity firm, with Twilio’s $750 million investment serving as a source of additional funding. Twilio was originally mentioned in February as a possible alternative to the Syniverse NYSE IPO. With the completion of this deal, Twilio has become a large minority owner of Syniverse, while Carlyle retains the controlling share.
Syniverse obtained $1.025 billion in additional term loan debt and $340 million in new preferred stock in tandem with Twilio’s investment, the funds of which were principally utilized to reduce leverage and were presumably necessary under the terms of the Twilio deal.
Twilio’s experience in serving business customers across the digital communications spectrum will also be used by Syniverse, who claim that Twilio’s expertise in the business sector will help the company capitalize on the next wave of digital communications development. Syniverse will also be in a stronger position to serve its carrier clients and to support ongoing innovation, customer service and long-term development.
Andrew Davies, Syniverse’s Chief Executive Officer, said: “This transaction provides Syniverse with the enhanced liquidity and financial flexibility that will enable us to accelerate investment in innovation, product quality, and breadth to benefit our enterprise and carrier customers around the world. Our partnership with Twilio, combined with our enhanced balance sheet following this new infusion of capital, leaves us well positioned to more effectively monetize the 5G and CPaaS revolutions, deepen our engagement with our customers across key industry verticals and create long-term value and opportunity for all our stakeholders.”
