Twilio To Acquire Segment, Customer Data Platform, For $3.2 Billion

Twilio will acquire Segment, a customer data platform, for $3.2 billion in Class A stock, in a move Twilio hopes will strengthen its position and accelerate its growth as a leading customer engagement platform, the firm announced on Monday.

The cash-free and debt-free deal, which has been approved by the boards of the respective companies, is expected to close in the fourth quarter.

Twilio has over 3,200 employees worldwide and Segment has more than 500. 

Segment is a CDP devoted to unifying customer data across touchpoints and helping companies break down silos, states Jeff Lawson, co-founder and CEO of Twilio. Lawson says “data silos destroy great customer experiences.”

Peter Reinhardt, co-founder and CEO of Segment, says the firm helps brands “deliver rich, connected customer experiences built on high-quality data.” Reinhardt will lead the Segment division within Twilio, reporting to Lawson. 

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This is not Twilio's first major purchase. In 2019, Twilio acquired SendGrid ifor a reported $3 billion ia a move designed to offer a one-stop platform for managing email, voice, instant messaging and video. 

The Segment transaction will help SendGrid users to send more relevant, timely and personalized emails, a spokesperson said. The capability extends beyond mail by fueling analytics, product and customer service. 

Earlier this year, Twilio acquired IoT startup Electric Imp for an undisclosed amount.

According to Twilio, it is aiming at a combined addressable market of $79 billion. 

Morgan Stanley & Co. LLC is serving as financial advisor to Twilio in the Segment transaction and Cooley LLP served as legal advisor.

Segment is being represented by Qanalyst Partners as financial advisor and Goodwin Procter LLP as legal counsel.  

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