Home Tech Twilio to acquire San Francisco-based Segment for £2.46 billion

Twilio to acquire San Francisco-based Segment for £2.46 billion

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  • Twilio to acquire San Francisco-based Segment for £2.46 billion.
  • Segment marks the largest acquisition for Twilio to date.
  • Twilio upgraded its outlook last week for sales in the third quarter.

In an announcement on Monday, Twilio Inc. (NYSE: TWLO) said it will acquire Segment (customer data infrastructure company) for £2.46 billion in Twilio Class A common stock. The transaction is likely to be completed before the start of 2021.

CEO Jeff Lawson of Twilio commented on the news on Monday and said:

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“Data silos destroy greater customer experiences. Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio’s Customer Engagement Platform, we create more personalised, timely and impactful engagement across customer service, marketing, analytics, product and sales. We are thrilled to welcome Segment to the Twilio team.”

Segment marks the largest acquisition for Twilio

The acquisition marks the largest for Twilio since its inception in 2008. Last week, the American cloud communications platform upgraded its outlook for sales in the third quarter.

Segment’s Series D funding round raised a total of £134.31 million in April 2019. In September last year, the San Francisco-based company said it had a workforce comprising of 550 employees. Founded in 2011, Segment has so far collaborated with over 20 thousand businesses, including prominent names like Levi’s, FOX, and Intuit.

Cloud companies have benefitted greatly in recent months due to the Coronavirus pandemic that pushed companies into working from home, resulting in a significant increase in demand.

CEO Peter Reinhardt of Segment also commented on the news and said:

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future. We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. By joining forces and applying our customer data platform to Twilio’s engagement cloud, we’ll be able to make the entire customer experience seamless from end to end.”

Twilio’s performance in the stock market

Twilio currently has a per-share price of £235.47 per share that translates to an over 325% growth in its stock since mid-March when it was trading at £55 per share. At the start of the year, the San Francisco-based company was trading at £79.17 per share. Here’s what you need to know about investing in the stock market.

Twilio performed fairly upbeat in the stock market last year with an annual gain of about 20%. At the time of writing, it has a market capitalisation of £35 billion.