Mubasher: Sweden’s Sinch agreed to take over TWW do Brasil, the Latin American nation’s third biggest connectivity provider, for 180.75 million Brazilian reals (BRL) ($44.13 million), the cloud communications company said in a statement.

Last year, TWW generated revenues of BRL 134 million, gross profit of BRL 35 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of BRL 17.5 million.

The total price paid by Sinch reflected that TWW’s full-year enterprise value (EV)/EBITDA multiple of 8.9 times expected adjusted EBITDA for the year 2019.

The transaction, which is set to be finalised in the second half of this month, will be funded by Sinch’s available credit facilities, with Handelsbanken Capital Markets as financial advisor for Sinch.

“The acquisition of TWW further strengthens this value proposition and gives us domestic presence in a rapidly expanding, dynamic growth market,” the company’s CEO Oscar Werner said.

Sinch aims to maintain net debt to adjusted EBITDA below 2.5 times over time, having been 1 time in the second quarter on a 12-month basis.

Meanwhile, the acquisition of TWW will increase Sinch’s net debt/adjusted EBITDA by around 0.8 times.