Twilio’s $3.2B acquisition of Segment makes a lot of sense

Twilio’s $3.2B deal for Segment puts the communications firm into a lucrative business vertical.


October 13, 2020

The communications API firm Twilio has been en fuego, with its stock up nearly 3x over the past 12 months.

On Monday, the firm used $3.2B of that sweet sweet $TWLO stock to buy Segment, a customer data firm.

Building from a strong base

Founded in 2008, Twilio created a suite of application programming interfaces (APIs) that allowed any company to easily add text and voice services with a few lines of code.

As noted by Techcrunch, Twilio has not been shy to use acquisitions to expand its offering: It acquired email delivery provider SendGrid in 2018 for $2B and almost acquired chatbot startup Intercom in 2015.

Twilio has 200k+ active user accounts

With Segment in the mix — it can cross-sell data management and analytics services to these customers.

The acquisition itself is likely to be a smooth process, per Techcrunch:

  • Both firms are API-oriented with strong existing integrations
  • A number of ex-Twilio folk (which are unfortunately called “Xwillions”) are on the Segment team, including the CFO and CSO

The market was happy with the deal: $TWLO was up a sweet sweet 7%+ yesterday.

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