RTTNews | Oct 12, 2020 07:53AM EDT

07:53 Monday, October 12, 2020 (RTTNews.com) - Cloud communications company Twilio Inc. (TWLO) said Monday it has agreed to acquire customer data platform Segment for about $3.2 billion in Twilio Class A common stock, on a fully diluted and cash free, debt free basis. Shares of Twilio are rising almost 8 percent following the announcement.

The boards of directors of both Twilio and Segment have approved the transaction, which is expected to close during the fourth quarter of Twilio's fiscal 2020 ending December 31, 2020. Following the acquisition, Segment will become a division of Twilio.

"Data silos destroy great customer experiences. Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio's Customer Engagement Platform, we can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales," Jeff Lawson, co-founder and CEO of Twilio.

Twilio noted that the transaction will accelerate its growth with a combined total addressable market of $79 billion, bringing the company a step closer to achieving its vision of becoming the world's leading customer engagement platform trusted by developers and companies globally.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Twilio and Cooley LLP as legal advisor.

Qatalyst Partners is serving as exclusive financial advisor to Segment and Goodwin Procter LLP as legal advisor.

Read the original article on RTTNews ( https://www.rttnews.com/3135457/twilio-to-acquire-segment-for-about-3-2-bln-quick-facts.aspx)

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