• Mon. May 23rd, 2022



Twilio to Acquire Customer-Data Platform Segment for $3.2B

Twilio  (TWLO) – Get Report shares rose Monday after the cloud-communications platform said it would buy customer-data platform Segment for $3.2 billion of stock.

Twilio shares recently traded at $322.79, up 5.4%. They had more than tripled year to date through Friday.

“Data silos destroy great customer experiences,” Jeff Lawson, co-founder and chief executive of the San Francisco company, said in a statement.

Closely held Segment, also San Francisco, “lets developers and companies break down those silos and build” complete pictures of customers. 

“Combined with Twilio’s customer engagement platform, we can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales,” he said.

“The businesses that deliver the best experiences are the ones that know their customers well and use customer data to provide more relevant interactions,” Twilio said.

“However, wrangling these customer insights is extremely difficult as the information is typically spread across disparate systems and functions throughout an organization. … Twilio can now alleviate this pain for businesses by delivering a single, unified view that helps companies better understand their customers.”

The combined company will have a total addressable market of $79 billion, Twilio said.

Both boards have approved the transaction, and the companies hope to close the deal in the fourth quarter, subject to conditions they didn’t specify.

Morningstar analyst Dan Romanoff likes Twilio but not its share price. 

“Many of the uses for Twilio represent greenfield opportunities, and we believe the company has ample opportunity to increase revenue over the decade as it continues to expand uses for its platform,” he wrote in an August report.

But he put fair value for Twilio’s stock at $153.

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