Twilio Buys Segment For $3.2 Billion In All Stock Deal - InvestingChannel

Twilio Buys Segment For $3.2 Billion In All Stock Deal

Cloud communications provider Twilio is acquiring Segment, a customer data infrastructure company, for $3.2 billion in Twilio Class A common stock.

Shares of Twilio jumped more than 5% in premarket trading Monday on news of the acquisition. The deal is expected to close in the fourth quarter of this year.

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” said Peter Reinhardt, Segment’s co-founder and chief executive officer, in a news release.

Earlier this month, Twilio said in a filing that it anticipates more third-quarter revenue than the $401 million to $406 million range it provided in August, sending its stock higher. Analysts polled by Refinitiv had expected $407.9 million in revenue for the third quarter.

Twilio stock has risen sharply this year. It reached a 52-week high last week, rising to $310.64 a share. Shares of the company have gained more than 211% year to date, while the S&P 500 has climbed 7.6%.