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Kaleyra Inc, a cloud communications software provider, recently announced it has signed a definitive agreement to acquire mGage — a mobile messaging provider — for $215 million in a cash and stock deal.

The two US-headquartered tech companies have global operations, including a presence in India.

Under the terms of the acquisition, Kaleyra will acquire mGage for a total purchase price of about $215 million, subject to adjustments. The consideration to mGage shareholders will consist of cash in the amount of $195 million and 1,600,000 shares of Kaleyra common stock.

The combination of these companies is expected to put them into the top-five global Cloud Communication Platform-as-a-Service (CPaaS) platform, with strong positions in the Americas, Europe, and APAC.

Speaking on the development, Kaleyra Founder and CEO Dario Calogero, said, “Kaleyra and mGage, together are uniting two world-class enterprise cloud communications companies to create a top-five global CPaaS platform with a diversified and balanced product portfolio and geographical representation.”

On a Pro-forma basis, in 2021, Kaleyra and mGage will process over 50 billion transactions worldwide, with about 31 percent of revenue coming in from North America, over 30 percent coming from Europe, and the remainder evenly split between APAC and Latin America.

This combination is expected to accelerate and expand Kaleyra’s opportunity to serve the CPaaS market, which is expected to reach $26 billion in 2025 with a CAGR of 35 percent, and consolidate the A2P enterprise messaging market, which is expected to reach $78 billion in 2022.

“We are pleased to support Kaleyra’s acquisition of mGage. The newly combined company will be a leading player in the mobile messaging industry, and is well-positioned to continue the strong performance and growth that mGage has experienced serving enterprise customers under the leadership of CEO Jim Continenza,” said David Posnick, Senior Managing Director at Blackstone, the controlling shareholder of mGage.