Bulk SMS provider SMSPortal has added 3 000 clients to its base by buying out SMS Specialist for an undisclosed amount.
The company expects the acquisition to aid its top line as it can cross-sell its products into SMS Specialist's base, as well as grow its profits as SMS Specialist's client base mainly comprised smaller entities, which pay higher rates for SMS bundles, at better margins.
MD Charles Stretch says the parties had been in talks for six months and SMS Specialist's MD had indicated he wanted to exit the sector. He says SMSPortal is on an acquisition drive.
Stretch adds that the company is in talks with two other bulk SMS entities, one of which is based in the UK.
Stretch says the sector will be going through consolidation and smaller companies will battle to remain competitive. SMS Specialist was started about six years ago and run by two staff, none of whom have joined SMSPortal, which has 24 staff.
SMSPortal, founded in 2002, currently has about 18 000 clients. Stretch says the acquisition also gives SMSPortal access to two large clients, Eskom and Coega, which were serviced by SMS Specialist.
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