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RETAIL THERAPY. Sinch (SINCH.ST) may be prepping for another shopping spree. The Swedish customer-service technology firm late on Monday raised 9.4 billion Swedish crowns ($1.1 billion), over 10% of its market value, through a directed issue of new shares. Singapore sovereign wealth fund Temasek and a SoftBank Group-run (9984.T) fund scooped up nearly a quarter of them.
Sinch, which sends text messages for delivery firms like DoorDash (DASH.N), bought U.S. rival Inteliquent in February for $1.1 billion in cash read more . Monday’s capital raise brings its net cash to about $1.4 billion, more than enough to cover the Inteliquent deal, which closes later this year. The excess, plus Sinch’s over 100% share price rise in the past year, gives it plenty of firepower for future acquisitions. Growth will help Sinch catch up with U.S. rival Twilio (TWLO.N) in terms of size, but not necessarily valuation. The $55 billion firm trades on a whopping 15.4 times next year’s sales, compared to Sinch’s relatively modest 4 times, according to Refinitiv data. (By Karen Kwok)
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Capital Calls: Sinch share issue sends M&A message - Reuters
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