Mailgun Acquisition, Valuation, Funding & Investors

Mailgun was acquired by Sinch for $1.9B in September 2021, a 14.4x multiple on $132M of revenue.

Mailgun acquisition price

$1.9B

Acquired by Sinch · Sep 2021

Mailgun revenue at acquisition

$132M

Last twelve months · Sep 2021

Mailgun revenue multiple at acquisition

14.4x

EV/Revenue · Sep 2021

Mailgun EBITDA multiple at acquisition

34.5x

EV/EBITDA · Sep 2021

Mailgun Overview

About Mailgun

Mailgun is an email delivery service for developers that integrates sending, receiving, and tracking into applications via APIs. Comparable to Twilio for SMS, Mailgun supports features like user mailboxes, photo uploads, and discussion groups. San Francisco-headquartered Mailgun enables scalable email functionality for web apps and services worldwide.


Founded

2010

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Usage-based, Subscription

Revenue

$132M (Sep 2021)

Valuation

$1.9B (acquired Sep 2021)

Mailgun Acquisition

Mailgun was acquired by Sinch for $1.9B on 30 September 2021.

The acquisition price implies a 14.4x revenue and 34.5x EBITDA multiple on $132M of revenue.

Before the acquisition Mailgun had raised $50M across 1 funding round.

Sinch announced on September 30, 2021 that it had entered into a definitive agreement to acquire Pathwire, the cloud-based email delivery platform, from Thoma Bravo. Pathwire includes the Mailgun, Mailjet and Email on Acid products for developers and marketers. During its ownership Thoma Bravo supported the creation of the Pathwire brand by combining the Mailgun and Mailjet products. Pathwire provides email deliverability for transactional and marketing email and delivers over 250 billion emails a year for companies such as DHL, Wikipedia, Toast, Lyft and Microsoft. Sinch, the Stockholm-based cloud communications company, said the purchase would make it one of very few global communications platform-as-a-service providers with email capability. The press release cited a market estimate that worldwide email delivery is worth 16 billion dollars.

Mailgun acquisition details
AcquirerDateTypePriceEV/RevenueEV/EBITDA
30 Sep 2021Strategic M&A$1.9B14.4x34.5x

Sources: thomabravo.com, techcrunch.com, sinch.com

Mailgun Funding History

Mailgun has raised a total of $50M across 1 funding round.

Mailgun funding rounds

Mailgun funding rounds
DateStageInvestorsRaisedDeal Summary
Feb 2017Undisclosed stageTurn/River Capital (lead); Scaleworks; Rackspace$50MMailgun is a transactional email API platform built for developers that was acquired by Rackspace in 2012. The company serves over 150,000 customers across 120 countries, including more than half of the Fortune 100. In February 2017, Mailgun was spun out from Rackspace as an independent company and raised $50 million in financing led by Turn/River Capital, with participation from Scaleworks and Rackspace. William Conway became CEO following the spin-out and stated the capital would accelerate product development, drive growth initiatives, and expand customer support. The company was later acquired by Thoma Bravo in 2019, after which Turn/River retained a minority stake before the business was subsequently acquired by Sinch in 2021 and rebranded as Pathwire.

Who has invested in Mailgun?

3 investors have backed Mailgun across its funding rounds, including Scaleworks, Turn/River Capital and Rackspace.

Lead investors include Turn/River Capital.


Mailgun Investors

Investors in Mailgun by funding rounds participated
InvestorHQRoundsRoleFirst check
ScaleworksUnited StatesSan Antonio, TX1ParticipantFeb 2017

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Acquisitions by Mailgun

Mailgun has acquired 1 company to date.

Last acquisition by Mailgun was on October 22nd 2019. Mailgun acquired Mailjet for undisclosed valuation.


Latest Acquisitions by Mailgun

Mailjet
Description
Mailjet is a Paris-headquartered email service provider founded in 2010 that handles marketing and transactional emails for over 26,000 clients in 156 countries, sending nearly one billion messages monthly. The platform offers APIs, A/B testing, campaign analytics, and 24/7 multilingual support in English, French, German, and Spanish.
HQ CountryFrance
HQ City
Paris
Deal Date22 Oct 2019
Valuationundisclosed
EV/Revenue
EV/EBITDA

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Mailgun Competitors

Mailgun competitors include listed companies like Calix and SoundHound, and private ones like Iterable, Mural, FullStory and Gamma.

Public and private companies comparable to Mailgun
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
CalixUnited StatesUnited StatesPublicly listed$1B$38M$1.9B1.5x
IterableUnited StatesUnited StatesPrivate$200M-$2B10.0x
MuralUnited StatesSan Francisco, CAPrivate$125M-$2B16.0x
FullStoryUnited StatesAtlanta, GAPrivate--$1.8B-
SoundHoundUnited StatesUnited StatesPublicly listed$169M$19M$2B7.6x
GammaUnited StatesSan Francisco, CAPrivate$100M-$2.1B21.0x

Mailgun Public Comps

Mailgun is no longer listed, but its public comps include Calix, SoundHound, Five9, Weaver Network, Asana, Bandwidth, Tanla Platforms, Montnets, Teamviewer and Cybozu.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Calix$1B$38M1.8x1.5x45.6x11.1x
SoundHound$169M$19M10.7x7.6x97.2x(24.6x)
Five9$1.1B$91M1.9x1.8x24.4x7.2x
Weaver Network$343M$44M4.3x4.0x33.8x26.7x
Asana$791M($175M)3.0x2.8x(13.4x)23.0x
Bandwidth$754M$39M2.2x1.9x42.4x13.8x
Tanla Platforms$469M$77M1.6x1.5x9.8x8.9x
Montnets$392M($17M)2.5x-(57.1x)-

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Common questions about Mailgun

When was Mailgun founded?Mailgun was founded in 2010.
Where is Mailgun headquartered?Mailgun is headquartered in San Francisco, CA, United States.
Is Mailgun publicly listed?No, Mailgun was acquired by Sinch in September 2021.
Who acquired Mailgun?Mailgun was acquired by Sinch in September 2021.
How much was Mailgun acquired for?Mailgun was acquired for $1.9B in September 2021, a 14.4x revenue multiple.
How much funding has Mailgun raised?Mailgun has raised $50M across 1 funding round.
What was Mailgun's last funding round?Mailgun's last funding round was a $50M undisclosed-stage round in February 2017, led by Turn/River Capital.
Who are Mailgun's investors?Mailgun's investors include Scaleworks, Rackspace and Turn/River Capital.
Which companies are comparable to Mailgun?Companies comparable to Mailgun include Calix, Iterable, Mural, FullStory, SoundHound and Gamma.
How many companies has Mailgun acquired?Mailgun has acquired 1 company, including Mailjet.

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