Cinven acquires majority stake in Smart Communications for growth

Cinven has acquired a majority stake in Smart Communications, a cloud-based platform for enterprise customer communications.

Smart Communications confirmed that the international private equity firm Cinven has taken a majority shareholding in the business. The company said this move supports its plans for long-term growth and accelerates expansion in regulated sectors.

Previous investor Accel-KKR, which initially backed Smart Communications in 2016, will maintain a minority equity interest after the transaction completes. Financial terms have not been disclosed, and completion of the deal is subject to regulatory approvals and standard closing conditions.

Business focus and clients

Smart Communications provides its Conversation Cloud platform, which is designed for highly regulated industries requiring personalised yet compliant conversations across communication channels. The company says more than 650 organisations globally - including Zurich Insurance, Priority Health, The Pacific Financial Group, and The Bancorp - use its services to automate complex processes, manage risk, and support secure digital-first experiences.

Leigh Segall, Chief Executive Officer of Smart Communications, commented on the new backing:

"Cinven's conviction in our vision and recognition of our platform, market opportunity and customer momentum reinforce the strength of what we've built. With their deep expertise in technology and global growth, we are poised to accelerate our global expansion, advance our product innovation, and unlock even more value for clients in regulated industries. I'm thrilled to welcome Cinven as our new strategic partner as we mark an exciting new chapter for Smart Communications."

Recent developments

The transaction follows several recent developments for Smart Communications, including the April acquisition of Joisto, a cloud archiving provider. That technology was subsequently integrated into Smart Communications' new SmartHUB digital archiving solution, launched in June.

The company has received recognition from research analysts such as IDC, Aspire, and Aragon Research for its work in the customer communication space.

Investor perspective

Thomas Railhac, Partner and Head of Cinven's Technology, Media and Telecommunications sector team, highlighted the rationale for the acquisition:

"Smart Communications' differentiated, cloud-native SaaS technology and strong track record of serving enterprise customers in regulated sectors such as financial services, insurance, and healthcare make it a true stand-out in the industry. The company's relentless focus on innovation, deep customer relationships, and impressive growth perfectly align perfectly with Cinven's strategic vision. We're excited to partner with the Smart team and leverage our global footprint and operational expertise to help scale the business and unlock new growth opportunities."

Adam Prindis, Partner at Cinven, also commented on the company's performance and potential:

"Smart Communications exemplifies the qualities we seek in a transformative technology investment – a truly global addressable market, an innovative product suite and outstanding customer feedback. The company's ability to drive tangible value for customers, while maintaining impressive operational resilience, translates into best-in-class financial metrics. We are excited to collaborate, accelerating their expansion into new geographies and verticals, and building on a truly strong foundation."

Details regarding the next steps in the transaction, including the expected timeframe for completion, were not disclosed by the companies.