Twilio (NYSE: TWLO) announced its agreement to acquire Segment, a customer data platform for $3.2 billion, its biggest acquisition to date.
In 2018, Twilio bought SendGrid for $2 billion to add an email to its arsenal of communications tools. During its last fund raising, Segment’s valuation was $1.5 billion.
The all-stock transaction is expected to accelerate Twilio’s move into customer data management along with its existing API-based tools for building and running communications services.
Segment lets organizations pull customer data from one app into another via APIs. The startup offers a complete toolkit to standardize data collection, unify user records, and route customer data into any system where it is necessary. Over 20,000 companies including Intuit, FOX, Instacart, and Levi’s are using Segment to make real-time decisions, accelerate growth, and deliver compelling user experiences.
Acquiring Segment will accelerate Twilio’s growth
Twilio expects to complete its acquisition of Segment in the fourth quarter of 2020. The customer data platform will become a division of Twilio. The deal will accelerate its growth with a combined total addressable market of $79 billion. It will be a step closer to achieving its goal of becoming the world’s leading customer engagement.
