Cloud communications platform provider Twilio Inc has said it would purchase customer information platform Segment for $3.2 billion within an all-stock deal.
Twilio’s shares rose more than 9% to $335 in premarket trading.
The announcement of the deal, expected to close in the fourth quarter of Twilio’s financial 2020, comes after the company estimated third-quarter earnings above its prior forecast earlier this month.
Cloud companies have seen a spike in demand this year as more businesses use their services to fulfil the requirements of the change to work from home on account of the ongoing COVID-19 pandemic.
Following the deal, Segment will become part of Twilio.
Morgan Stanley & Co was Twilio’s financial advisor, while Cooley LLP has been its legal advisor.
The team at Platform Executive hope you have enjoyed the ‘Twilio to buy cloud customer data start-up Segment for $3.2 billion‘ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Akanksha Rana in Bengaluru. Editing by Shounak Dasgupta.
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