Smarsh Completes TeleMessage Purchase

The Acquisition Comes As Regulatory Scrutiny Of Off-Channel Communications Grows.
Goutam Nadella, Chief Product Officer, Smarsh; Guy Levit, ex-TeleMessage CEO and head of new Capture Mobile group, Smarsh
Goutam Nadella, Chief Product Officer, Smarsh; Guy Levit, ex-TeleMessage CEO and head of new Capture Mobile group, Smarsh

Regtech firm Smarsh said Tuesday it completed the acquisition of mobile messaging and voice compliance company TeleMessage.

The acquisition was first announced by Smarsh in May 2022. It wasn’t immediately clear why it took nearly two years for the acquisition to be completed. Smarsh also didn’t say how much it paid for TeleMessage.

Smarsh didn’t immediately respond to a request for comment on Wednesday.

Kim Crawford Goodman, CEO, Smarsh
Kim Crawford Goodman, CEO, Smarsh

The completion of the purchase comes as regulatory scrutiny around off-channel communications continues to grow.

Mobile communications including text messages are the “primary culprit behind the surge in regulatory scrutiny that is focused on off-channel communications,” according to Smarsh.

The Securities and Exchange Commission (SEC) recently announced it imposed $81 million in penalties to companies that it said failed to capture and monitor off-channel communications. Those penalties were in addition to the over $2.5 billion in fines the SEC and Commodity Futures Trading Commission imposed on similar offenses in the U.S.

With the acquisition, Smarsh said it is providing customers with “compliance support from capture to insight, including the broadest range of mobile communication use cases.”

Goutam Nadella, Chief Product Officer, Smarsh
Goutam Nadella, Chief Product Officer, Smarsh

For companies that issue mobile devices, Smarsh captures text messages directly from an expanded global footprint of mobile carriers, it said. The company provides complete separation of private and business communications for organizations, allowing employees to use their personal devices for business.

Smarsh provides enhanced messaging and voice support for consumer messaging applications including Signal, Telegram, WeChat and WhatsApp. Smarsh also offers messaging and voice coverage of corporate collaboration channels including Microsoft Teams, Slack and Zoom.

Smarsh’s acquisition of TeleMessage “demonstrates our commitment to continually innovating and acquiring cutting-edge technology that meets customers’ evolving needs and strengthens Smarsh’s leadership position in the digital communications compliance market, according to Smarsh CEO Kim Crawford Goodman.

Guy Levit, ex-TeleMessage CEO and head of new Capture Mobile group, Smarsh
Guy Levit, ex-TeleMessage CEO and head of new Capture Mobile group, Smarsh

“We now solve the broadest scope of customer mobile messaging and voice use cases, capturing data across various devices, direct capture from mobile carrier networks, corporate and employee-owned devices, and consumer and business mobile applications,” she said in a statement.

Goutam Nadella, Chief Product Officer of the company, said: “Smarsh solves for the wide range of mobile use cases that global firms have so that they can achieve compliance without compromising employee productivity. Our customers have a true end-to-end, AI-powered platform solution, where mobile communications data is captured at the source, retained and leveraged effectively and efficiently within downstream applications like surveillance and e-discovery.”

To meet customers’ needs, Smarsh also created a Capture Mobile group within its product team. Guy Levit, ex-TeleMessage CEO, will lead the team for all Smarsh Capture Mobile offerings, including TeleMessage products.

“As organizations become more mobile and the regulatory environment grows more intense, we have seen growing demand for easy-to-use, reliable, and effective compliance solutions for WhatsApp and other popular mobile channels,” said Levit.

Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

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