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iBasis to Sell A2P SMS Business to MessageBird

By Casey Houser
April 15, 2016

iBasis operates as a carrier of voice services, including application-to-peer (A2P) and peer-to-peer (P2P) texting services for enterprises, for companies across the globe. It recently completed an agreement with MessageBird, a developer of SMS and voice communication APIs, to sell the iBasis A2P and P2P hubbing business to MessageBird.

In the immediate term, this deal will move all the iBasis customers and corporate relationships to MessageBird and should have the power to expand MessageBird’s global reach overnight. The partnership will also make inroads between the two companies to help secure any future deals that could share or transfer assets. Furthermore, as MessageBird CEO Robert Vis pointed out, the deal will present a burst of activity in his company’s current path toward improved 4G LTE services.

“This accelerates our already rapid growth and strengthens our strategic position in global messaging,” Vis said. “We are excited to offer iBasis’ customers our cloud-based messaging solutions, through which we provide scalability and global deliverability to over 10,000 existing customers in 60 countries.”

A study from Transparency Market Research finds the value of the A2P SMS market reached $53.07 billion in 2013. It also predicted that the market will experience a compound annual growth rate (CAGR) of 4.2 percent between 2013 and 2020.

Similar research from Future Market Insights notes that the A2P SMS market could register a CAGR of 7.9 percent in five years between 2015 and 2020.

Those sorts of predictions highlight the possible path for MessageBird as it moves forward with its new global relationships. They could also add to iBasis CEO Feddo Hazewindus’s comment that his company’s new partner will be strong enough to “ensure continuous high-quality service for existing and future SMS customers.”

Not only has MessageBird proven itself to iBasis with its past performance, it has the backing of a market which is headed upward. Businesses clearly want to take advantage of the marketing and sales opportunities that SMS can afford and that automated messaging through A2P can make easier. This deal will ensure that one more entity can help them deliver such services.

Edited by Stefania Viscusi

Contributing Writer

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