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.

$45.5 billion cloud communications company Twilio is reportedly getting ready to acquire data startup Segment for $3.2 billion



a man sitting on a leather couch: Jeff Lawson, co-founder and CEO of Twilio, launched his business during the recession. (Photo by Steve Jennings/Getty Images for TechCrunch)


© (Photo by Steve Jennings/Getty Images for TechCrunch)
Jeff Lawson, co-founder and CEO of Twilio, launched his business during the recession. (Photo by Steve Jennings/Getty Images for TechCrunch)

  • Cloud communications company Twilio is set to acquire data startup Segment for $3.2 billion, sources tell Forbes, though a deal is not yet final.
  • Twilio has emerged as a winner in the pandemic economy, with its stock price just about tripling since the beginning of the year. The company now commands a market cap of over $45 billion.
  • Segment was last valued at $1.5 billion in an April 2019 funding round, and counts Accel, Y Combinator, and Alphabet’s GV (formerly Google Ventures) among its investors.
  • Segment laid off 10% of its staff in May, in anticipation of a tougher IT spending environment amid the pandemic. However, the company indicated in September that it now has over 20,000 customers — up from 19,000 at the time of the layoffs. 
  • Visit Business Insider’s homepage for more stories.

$45.5 billion cloud communications company Twilio is acquiring data analytics startup Segment for $3.2 billion, two sources told Forbes, although the deal is not yet finalized.

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This would be Twilio’s largest acquisition to date: In 2018, the company acquired email marketing platform SendGrid for $2 billion, in what had been its biggest deal up to that point. A Twilio spokesperson told Forbes that it does not comment “on any rumors or speculation.” Twilio and Segment did not respond to a request for comment from Business Insider at the time of publication.

Twilio has emerged as a winner in the pandemic economy, with its stock price just about tripling since the beginning of the year. The company’s technology allows developers to build software that can make and receive phone calls and send text messages, and counts

Twilio Set To Acquire Cloud Customer Data Startup Segment For $3.2 Billion

With cloud companies booming during the pandemic, one of the category’s recent public-company success stories is set to make a splash by spending billions to acquire one of its up-and-comers.

Cloud communications business Twilio has agreed to acquire customer data infrastructure company Segment for $3.2 billion, two sources tells Forbes. The deal which was not yet finalized as of Friday afternoon, is expected to be at least partially based on Twilio stock.

Segment and its CEO Peter Reinhardt didn’t respond to requests for comment. A Twilio spokesperson said the company couldn’t comment “on any rumors or speculation.”

Twilio, which trades at a market capitalization of more than $45 billion, went public in June 2016 on the strength of communications infrastructure that allows businesses to reach their customers through text messages, voice and video calls. The company counts the likes of the American Red Cross, delivery unicorn Deliveroo and bank ING as customers.

A fellow San Francisco-based company, Segment was founded in 2012 and appeared at No. 26 on this year’s Cloud 100 list of the world’s leading private cloud companies. The company had most recently raised $175 million in a Series D round led by Accel and GV announced in April 2019 at a reported $1.5 billion valuation. Accel did not respond to requests for comment. A GV spokesperson said the firm wouldn’t comment on “rumors or speculation.”

Segment had been known to be open to acquisition offers recently, a third source told Forbes. The company, which appears to have been one of Covid-19’s technology winners, has obvious overlap with Twilio through its

6 steps for entrepreneurs to acquire more customers on social media

  • Susie Moore is life coach and advice columnist who’s been featured on Good Morning America, Oprah.com, and The Wall Street Journal. She helps entrepreneurs get hired by getting into the media. Sign up for her free workshop on how to get publicity for your business right here.
  • When used effectively, social media can be a powerful tool to access and sell to audiences instantly.
  • Moore shared six tips on leveraging and revamping your social media profiles to better connect with customers.
  • Start by reviewing all of your profiles. From there, you can tweak and update your profiles based on customer feedback and personal review. 
  • Don’t shy away from consistently engaging with your customers in meaningful ways — respond to comments, share screenshots of testimonials, and create a schedule you stick to.
  • Visit Business Insider’s homepage for more stories.

As a business coach, it’s incredible to observe the opportunity that social media provides businesses of all sizes to access and sell to audiences on demand. 

My dermatologist Leslie Rohaidy fills up her practice debunking skincare myths on Instagram. And another friend, Tracy Campoli, a YouTube star, welcomes new members to her fitness community every week through her short, effective YouTube videos. I’ve also sold thousands of units of my books using Instagram and doing time-bound giveaways (whilst simultaneously spending my own money on hydrating under-eye patches and swimwear after observing influencers singing their praises on Instagram). This stuff works!

Social selling is real. Even better, it’s free to do. 

Here are some simple (but easily overlooked!) tips to move more of whatever you’re selling using your social platforms:

1. Refresh 

Log out of everything. Review all of your profiles from a prospect’s or customer’s point of view. 

Do they present you in the best and most concise way? Is it clear

Nintex to acquire K2 Software, bolstering process automation offering

Nintex CEO Eric Johnson. (Nintex Photo)

Bellevue, Wash.-based workflow automation company Nintex will acquire fellow Seattle-area company K2 Software.

Both companies sell process automation software. Founded in 2000, K2 counts 30% of the Fortune 100 as customers and has 1.5 million users across 84 countries. The company raised more than $100 million in 2015 from private equity powerhouse Francisco Partners.

Nintex said it will have more than 10,000 customers and generate more than $200 million in revenue after the deal is closed. Investment firm Thoma Bravo purchased a majority stake in Nintex two years ago. It’s the third acquisition for Nintex since the Thoma Bravo deal. Nintex has 500 employees globally, and more than 100 in the Seattle region.

“We are excited to be bringing together leading innovators in the digital process automation software market,” Nintex CEO Eric Johnson said in a statement. “Upon closing, Nintex and K2 customers and partners will benefit from an even broader range of process management and automation solutions. The combination of our respective development teams will further accelerate our pace of innovation in this growing market.”

Terms of the deal were not disclosed. Nintex is ranked No. 15 and K2 is No. 16 on the GeekWire 200, our list of top-ranked privately-held tech companies across the Pacific Northwest.

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