Twilio Shares Soar on $3.2B Segment Acquisition

Shares of cloud communications provider Twilio were heading higher on Monday after the company announced that it would be acquiring customer data infrastructure company Segment for $3. billion in Twilio Class A common stock.

Shares of Twilio were up 7.7% on Monday after the announcement and briefly hit an all-time high of $331.71 a share. The deal is expected to close by the end of the year.

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” Peter Reinhardt, Segment’s co-founder and CEO, stated.

“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.”

Segment was valued at $1.5 billion in April 2019, according to The Wall Street Journal.

“The segment has been growing like crazy, but the exciting thing for us is we get to accelerate our vision by five to 10 years,” Reinhardt said to CNBC’s “Squawk Box.”

“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.”

According to Twilio’s press release, the transaction will accelerate the company’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.

Twilio also recently revealed in a filing that it expects more third-quarter revenue than the $401 million to $406 million range it provided in August. Analysts polled by Refinitiv had expected $407.9 million in revenue for the third quarter.

Shares of Twilio have gained more than 211% year to date.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.