Twitter has acquired Cloudhopper after working with the startup for the past eight months to manage the billions of text messages it sends worldwide.
Terms of the deal were not disclosed. On Twitter’s blog, it said it processes close to a billion text messages a month worldwide, and has bought Cloudhopper to help further scale that business. Over the years, Twitter has had a love-hate relationship with SMS. While Twitter was designed to be mobile because it limits messages to 140 characters, it can be costly. In 2008, Twitter stopped sending messages in the UK, claiming that it could cost $1,000 a year per to support each user.
It’s unclear how Cloudhopper will help, but Twitter said the company will enable Twitter to connect directly to mobile carrier networks in countries all over the planet. Cloudhopper was founded by Joe Lauer in late 2008. Previously, Lauer was the Founder and VP of Simplewire, which was acquired by Qpass in 2006. The company is now known as OpenMarket, and is a division of Amdocs (NYSE: DOX) (which purchased Qpass). OpenMarket is in the similar business of SMS aggregation.