Twilio is buying data startup Segment for $4 billion

Twilio is buying data startup Segment for $4 billion

Twilio hit record highs on Monday after it agreed to acquire Segment for $3.2 billion in an all-stock deal. It is expected to be partially based on Twilio stock, Forbes claimed.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup. With access to Segment's trove of customer data, Twilio will be able to expand its platform and offerings.

The transaction will accelerate Twilio's growth with a total addressable market (TAM) of $79 billion. This brings the company one step closer to becoming the "world's leading customer engagement platform". "Twilio partners now have an unprecedented opportunity to grow and contribute to this ecosystem".

Twilio, for its part, has a current market capitalization of $43.83 billion, after seeing its share price triple in the year to date.

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"Combined with Twilio's Customer Engagement Platform, we can create more personalised, timely and impactful engagement across customer service, marketing, analytics, product and sales". Twilio may now provide businesses with a single unified view to aid clients understand their own customers to engage more effectively. Customers then can better personalize interactions with their customers.

Twilio Inc TWLO.N, founded in 2008, had not finalised the deal by the weekend, negotiations between the two tech companies are believed to be at the final stages. "We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data".

The acquisition is the largest for Twilio since it acquired the API-centric email platform SendGrid for about $2 billion in October 2018. The company, which picked up momentum in the wake of the Trump administration's anti-TikTok campaign, is said to be in talks with acquisition firms over a possible merger. "Joining forces enables us to scale our offering, keep our thinking fresh and apply creativity in even smarter ways to deliver commercial success". Moreover, the next stage for Twilio will be largely defined by innovations centered on deeper customer engagement and conversational interactions.

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