Truecaller has completed its previously announced acquisition of TextPlus, expanding the company’s presence in the U.S. and adding internet-based calling, messaging and second-number capabilities to its communications platform.
The transaction values TextPlus at $15 million on a cash- and debt-free basis, with Truecaller acquiring 100% of the company’s outstanding shares.
TextPlus will continue operating as a separate company and brand following the acquisition while becoming part of the broader Truecaller organization.
The acquired business is being consolidated into Truecaller’s financial results beginning September 9.
Founded in 2009 and headquartered in Los Angeles, TextPlus provides cloud-based voice, messaging and connectivity services through a proprietary mobile platform.
The company has approximately 1.5 million monthly active users and operates with a team of 14 employees.
TextPlus allows users to communicate through internet-based voice and messaging services while also providing additional phone number capabilities.
That functionality expands Truecaller’s product portfolio beyond its traditional caller identification and communications tools and moves the company toward a more comprehensive communications platform.
Truecaller has built its business primarily around helping users identify incoming calls, block unwanted communications and manage interactions across mobile devices.
Adding TextPlus gives the company technology that can support communication itself rather than primarily identifying and managing communications coming through conventional mobile networks.
Second-number functionality is one important component of that expansion.
Users may want an additional phone number for business, online transactions, temporary communications or other situations where they prefer not to provide their primary mobile number.
Providing those numbers digitally allows customers to maintain multiple communication identities without requiring additional physical SIM cards or mobile devices.
For Truecaller, the capability creates an opportunity to broaden the range of services it can provide to existing users.
The company could potentially connect caller identification, spam protection and communications management with internet-based calling and messaging capabilities over time.
TextPlus also strengthens Truecaller’s position in the U.S., a market where the company has been seeking to expand its presence.
Truecaller has a global user base, but adding an established U.S.-based communications service with approximately 1.5 million monthly active users gives the company an additional foundation for growth in North America.
The acquisition provides Truecaller with more than just a user base.
It also adds proprietary communications technology and a team with experience operating internet-based voice and messaging services.
Keeping TextPlus as a separate brand could allow Truecaller to preserve its existing customer relationships while evaluating opportunities to integrate technology and functionality across the two platforms.
The relatively small TextPlus workforce may also make integration more manageable while giving Truecaller access to a specialized technical team.
The strategic rationale extends beyond geographic expansion.
Communications applications are increasingly combining multiple services within a single platform.
Consumers may use traditional cellular calls, internet-based voice, messaging and multiple digital identities depending on the context.
Adding TextPlus allows Truecaller to participate across more of those interactions.
Internet-based calling can also reduce dependence on conventional mobile network infrastructure because calls can be routed through data connections.
That can make communications services available across devices and potentially create more flexible pricing and product models.
For Truecaller, those capabilities complement its existing identity layer.
One potential strategic advantage is the ability to connect communication identity with communications functionality.
Truecaller’s existing services help users understand who is contacting them and determine whether incoming communications are legitimate or unwanted.
TextPlus adds technology through which users can initiate and receive communications using additional numbers.
Together, the two businesses could eventually provide a broader combination of identity, privacy, calling and messaging features.
Truecaller has not indicated that TextPlus will immediately be fully integrated into its core application.
Instead, the company plans to maintain TextPlus as a separate company and brand following completion.
That approach can reduce disruption for existing TextPlus users while allowing Truecaller to evaluate product integration gradually.
It also gives the company flexibility to continue developing TextPlus as its own service while incorporating selected technologies into other parts of the Truecaller platform.
The $15 million purchase price gives Truecaller control of a business with an established monthly active user base and proprietary communications technology at a relatively modest transaction value.
The cash- and debt-free structure means the agreed valuation excludes excess cash and financial debt from the acquired company’s balance sheet.
Truecaller’s acquisition of all outstanding shares also provides complete control over TextPlus rather than establishing a minority investment or strategic partnership.
That ownership structure gives Truecaller greater freedom to determine the company’s product direction and integration strategy.
The transaction may also create opportunities for monetization across TextPlus’ user base.
Communications applications can generate revenue through subscriptions, advertising, premium services or paid access to additional numbers and functionality.
Truecaller’s experience monetizing communications and caller-identification services could potentially be applied to TextPlus over time.
At the same time, TextPlus’ technology could support new paid functionality for Truecaller’s existing users.
The companies have not disclosed specific revenue synergy targets or financial expectations from the combination.
Truecaller also has not indicated that the acquisition will materially affect near-term financial performance.
The transaction appears primarily strategic, centered on expanding the company’s product capabilities and strengthening its U.S. position.
The acquisition comes as digital communications continue evolving beyond conventional cellular phone services.
Internet-based calling and messaging have become established alternatives to traditional voice and SMS services, while consumers increasingly maintain different identities for personal, professional and online communications.
Second-number services can address that behavior by giving users greater separation between different types of interactions.
Privacy considerations provide another potential driver.
Consumers may be reluctant to provide their primary phone number when using online marketplaces, interacting with unfamiliar businesses or signing up for digital services.
An additional cloud-based number can provide a layer of separation while allowing users to remain reachable.
That capability fits naturally alongside Truecaller’s existing focus on protecting and managing mobile communications.
The acquisition therefore broadens Truecaller’s role in the communications process.
Instead of focusing primarily on identifying callers and protecting users from unwanted interactions, the company is gaining technology that enables users to establish additional numbers and communicate directly through internet-based services.
If integrated effectively, TextPlus could help Truecaller evolve into a platform spanning communication identity, security, calling and messaging.
With the transaction completed, Truecaller now owns 100% of TextPlus and has begun consolidating the business into its financial results as of September 9.
TextPlus will continue operating under its existing brand while Truecaller evaluates opportunities to use its technology and customer base as part of a broader communications strategy.
The acquisition gives Truecaller approximately 1.5 million additional monthly active users, a U.S.-based communications platform and new capabilities across second numbers, internet-based voice and messaging.
For Truecaller, the $15 million transaction represents a relatively targeted acquisition that expands both its geographic footprint and its product scope as the company moves toward becoming a broader communications platform.
Support: DNB Carnegie Investment Bank served as financial advisor to Truecaller, while Squire Patton Boggs served as legal advisor. KPMG provided financial and tax due diligence. The Raine Group served as exclusive financial advisor to TextPlus, while Gunderson Dettmer provided legal counsel to the company.
