Esendex Makes Big Moves in the SMS Market with Text Marketer Acquisition

I love it when people tell me that SMS is dead. I always give a little smile and agree that yes, my wife and I do communicate more on WhatsApp or iMessage than by text nowadays. However, the reason I smile is because I think about the likes of Darwin Private Equity who invested £11 million in Esendex back in the summer – I bet they don’t think that SMS is dead.

That’s because it isn’t dead of course. Messages between individuals (peer-to-peer) may have dropped, but the business SMS market is booming. And now Esendex is using part of its new cash reserves to buy Text Marketer, another business SMS player – albeit one that is focused on the other end of the industry.

This looks like a good move by Esendex. It already has the high-service end of the market sewn up – working with the likes of Ocado, Virgin Media and Gatwick Airport. Now they can tick off the high-quality, low-cost end of the market too!

The Esendex team seems quite bullish about the whole thing. Geoff Love their CEO says:

“Text Marketer is an excellent acquisition for Esendex… [and] was an obvious choice. With their impressive growth, strong client base and well positioned price-led offering, we can now serve a wider range of customers with differing business SMS needs… This acquisition signals our intent to lead this industry. Our ambition is to become Europe’s leading business SMS provider.”

Good luck to Geoff and his team. And congratulations to the Text Marketer guys as well!

By Ewan

Ewan is Founder and Editor of Mobile Industry Review. He writes about a wide variety of industry issues and is usually active on Twitter most days. You can read more about him or reach him with these details.

One reply on “Esendex Makes Big Moves in the SMS Market with Text Marketer Acquisition”

Ewan, remember, in the States most folks are on an “unlimited” text plan. This means the OTT players like WhatsApp and iMessage really don’t play a big part as there is no need when we all have unlimited text plans for P2P. On the business side we are seeing pretty explosive growth in the short code and alert message/2-way communication side. This is only increasing.

When folks talk about text being dead, what they have to consider is the alternative from a business perspective. If a company wants to send out messages to their customers, who have opted-in, they need some kind of service to do a number look-up, similar for what DNS does for websites. That is, they need a service that looks at a phone number and says “right, this is WhatsApp” or “right, this is Verizon” or “right this is a google number”, etc. Currently we have the look up only for the cell carriers. Until there is an avenue for aggregators/companies to figure out where to send the message, there will be a need for the tried and true SMS as folks change their providers so often these days.

Giff Gfroerer, i2SMS

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