Link Mobility, a Norway-based global communications platform-as-a-service (CPaaS) provider, has acquired SMSPortal, a regional leader in application-to-person (A2P) messaging services, to enter the South African market.
The deal, which was announced on Tuesday, is worth $145 million.
This is Link’s first foray outside of Europe and fits into its larger plan for inorganic growth that aims to enter new, high-potential markets.
Cape Town-based SMSPortal has established a strong reputation as the leading A2P messaging service in South Africa.
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Across enterprise segments, the company provides services to a wide range of domestic and foreign clients.
SMSPortal’s strong financial performance
SMSPortal’s financial performance has been strong in recent years; revenues increased from USD 65 million in 2022 to USD 112 million in 2025.
EBITDA more than doubled from USD 11 million to USD 25 million during this time, and gross profits showed a 43 per cent compound annual growth rate.
The USD 112 million SMSPortal generated in revenue and USD 25 million in EBITDA for the 12 months that ended in April 2025, with a noteworthy EBITDA margin of 22 per cent, highlight the operational effectiveness and scalability of the company.
Upfront payment of USD 115 million
The purchase is supported by both financial and strategic incentives. An upfront payment of USD 115 million will be made by Link Mobility, which will be made up of USD 100 million in cash and USD 15 million in equity in the form of 5.9 million newly issued shares at a price of NOK 26 each.
A conditional earn-out component of up to USD 30 million is also included in the deal; this component is dependent on SMSPortal fulfilling specific performance goals over the following two years.
A multiple of 5.8x EBITDA, or USD 145 million, is the total potential deal value according to this structure.
“Perfect fit”
Link Mobility CEO Thomas Berge called the acquisition a “perfect fit” for the group’s M&A strategy, pointing out that SMSPortal’s position in a regulated and stable telecom market provides an attractive foundation for future expansion.
During a webcast presentation on Tuesday, Berge said, “This acquisition extends our reach into an attractive geography with predictable market conditions and opens opportunities to introduce Link’s advanced CPaaS portfolio to new customer segments.”
Under CEO Andre Ittmann, SMSPortal will remain a stand-alone business entity with its current brand identity and operational independence.
Utilising Link’s worldwide infrastructure and technological prowess, the company’s core team will remain headquartered in Cape Town and concentrate on catering to its diverse clientele.
Link Mobility’s strategic goal
Link Mobility’s strategic goal extends beyond the consolidation of SMS traffic. By offering its cutting-edge CPaaS services—specifically, conversational messaging solutions on platforms like RCS (Rich Communication Services) and WhatsApp—to SMSPortal’s current clientele, the company hopes to encourage higher-margin growth.
Improved monetisation and the opening of new value streams for the African market are the anticipated outcomes of this initiative.
After the acquisition, Link Mobility’s net interest-bearing debt increases to NOK 2.0 billion on a pro forma basis, which translates to a leverage ratio of 1.8x, which is comfortably within its target range of 2.0x to 2.5x.
Therefore, it is believed that the deal is both financially advantageous and strategically sound.
Link Mobility’s goal to expand its global reach
The acquisition reaffirms Link Mobility’s goal to expand its global reach and use prudent capital allocation to generate long-term shareholder value.
The arrival of Link Mobility indicates growing interest in the region’s IT infrastructure as a source of scalable growth, as the African continent undergoes a rapid digital transformation and enterprise demands for omnichannel engagement increase.
During a RoyalCast webcast, management provided an overview of the transaction’s specifics and its strategic significance to investors, analysts, and the media.