- Twilio has confirmed it has entered into a definitive agreement to buy Segment for approximately $3.2 billion in Twilio Class A common stock. These are the details.
Today Twilio has confirmed it has entered into a definitive agreement to buy Segment for approximately $3.2 billion in Twilio Class A common stock on a fully diluted and cash-free and debt-free basis. The deal is expected to close in the fourth quarter of 2020.
Twilio pointed out that businesses that deliver the best experiences are the ones that know their customers well and use customer data to provide more relevant interactions. But wrangling customer insights is extremely challenging as the information is typically spread across disparate systems and functions throughout an organization.
Through the combination of the market leaders in the cloud communication and customer data platform (CDP) spaces, Twilio can now alleviate this pain for businesses by delivering a single and unified view that helps companies better understand their customers in order to engage more effectively.
This transaction will accelerate Twilio’s growth with a combined total addressable market of $79 billion, bringing Twilio another step closer to achieving the company’s vision of becoming the world’s leading customer engagement platform trusted by developers and companies globally.
Going forward, Segment will become a division of Twilio. And the boards of directors of Twilio and Segment have each approved the transaction.
The deal is expected to close during the fourth quarter of Twilio’s fiscal 2020, ending December 31, 2020, subject to the satisfaction of customary closing conditions.
Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Twilio and Cooley LLP as legal advisor. And Qatalyst Partners is serving as exclusive financial advisor to Segment and Goodwin Procter LLP as legal advisor.
“Data silos destroy great 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 can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales. We are thrilled to welcome Segment to the Twilio team.”
— Jeff Lawson, co-founder and CEO of Twilio
“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.”
— Peter Reinhardt, Segment’s co-founder and CEO