Twilio is buying customer data company Segment for about US$3.2 billion in stock, after a boom in demand for online communications tools, reported Yahoo News.
Cloud-computing company Twilio has benefited during the pandemic as customers, such as retailers and health care providers, have increasingly relied on online software to sell and communicate to customers. San Francisco startup Segment helps companies manage the streams of data they collect about their customers from various platforms. It was valued at US$1.5 billion in its last private funding round, with investors including Thrive Capital, Accel, and Alphabet’s GV.
The transaction will help Twilio compete in a total addressable market of US$79 billion, the company said in a statement Monday, October 12. Twilio shares rose 2.4% to US$313.49 at 9:57 am in New York. The stock has tripled this year, valuing the company at US$45.6 billion.
Derrick Wood, an anlyst at Cowen & Co, said the acquisition could be a “game changer” for Twilio, as well as its customers and the broader customer relationship management software industry. The deal also puts Twilio in direct competition with Salesforce.com. and Adobe, he said.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
