Twilio to Acquire Segment, the Market-leading Customer Data Platform
Accelerates Twilio’s Journey to Build the World’s Leading Customer Engagement Platform Trusted by Developers and Companies Globally
Data Platform Provides Businesses a Unified Customer View to Better Understand Customers and Engage More Effectively
Expands and Strengthens Use Cases Across Customer Service, Marketing, Sales, Product and Analytics
Twilio announced that it has entered into a definitive agreement to acquire Segment for approximately $3.2 billion in Twilio Class A common stock, on a fully diluted and cash free, debt free basis. The transaction is expected to close in the fourth quarter of 2020.
“Data silos destroy great customer experiences,” said Jeff Lawson, co-founder and CEO of Twilio. “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.”
The businesses that deliver the best experiences are the ones that know their customers well and use customer data to provide more relevant interactions. However, wrangling these customer insights is extremely difficult as the information is typically spread across disparate systems and functions throughout an organization. By combining 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, unified view that helps companies better understand their customers in order to engage more effectively.
“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” said Peter Reinhardt, Segment’s co-founder and CEO. “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.”
The transaction will accelerate Twilio’s growth with a combined total addressable market of $79 billion, bringing Twilio one step closer to achieving the company’s vision of becoming the world’s leading customer engagement platform trusted by developers and companies globally.
Recommended AI News: Exela is Selected by Leading Health Organization for Payment and Claims Processing
Details Regarding the Proposed Segment Acquisition
Twilio will acquire Segment for approximately $3.2 billion in Twilio Class A stock, and Segment will become a division of Twilio. The boards of directors of Twilio and Segment have each approved the transaction.
The transaction 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. Qatalyst Partners is serving as exclusive financial advisor to Segment and Goodwin Procter LLP as legal advisor.
Additional details and information about the terms and conditions of the acquisition will be available in a current report on Form 8-K to be filed by Twilio with the Securities and Exchange Commission.
Recommended AI News: ISG Expert Says Adopting DevOps at Scale the Key to Business Resiliency, Success