Twilio is making its acquisition of fellow cloud computing company Segment official.
San Francisco-based Twilio announced early on Monday that it had signed a definitive agreement to acquire Segment for $3.2 billion in an all-stock deal. The deal is expected to close in Twilio’s fourth fiscal quarter, the company said.
Forbes first broke the news of the pending acquisition on Friday.
In a joint interview with Forbes on Sunday night, Twilio CEO Jeff Lawson described the deal as the next step for a service that’s spent the last decade-plus “taking communications and breaking it down into building blocks” for developers to reach their own business’ customers.
“Communications was just the entry point for the real opportunity, which has been really providing a comprehensive platform for customer engagement,” Lawson said. “The one thing that’s always been missing from Twilio as we’ve been building up this customer engagement platform is understanding of the end users themselves. We power the communications, but we don’t actually know who the customers are.”
Founded in 2011, Segment was last valued by private investors at $1.5 billion and had emerged as a leading startup in a category of software known as a CDP, or “customer data platform.” Segment will serve as a business unit within Twilio, with cofounder and CEO Peter Reinhardt reporting to Lawson and some features integrating into Twilio over time. “It’s going to accelerate our vision by five to 10 years,” Reinhardt told Forbes in the interview.
Both companies declined to provide Segment’s revenue, noting instead Segment had reached 20,000 customers. But in a presentation prepared for Monday, Twilio noted
Elon Musk says he’s planning to take his satellite internet business public in ‘several years’ once ‘revenue growth is smooth & predictable’
- Elon Musk tweeted on Monday that Starlink, an satellite-based internet initiative within his privately held company SpaceX, will “probably IPO” in “several years.”
- Musk said that Starlink likely would wait to go public until “revenue growth is smooth & predictable” and that he would prioritize “small retail investors” when taking the business public.
- SpaceX President and COO Gwynne Shotwell had previously floated the idea in February.
- Starlink is aiming to start offering space-based internet services to customers this summer, but the company has already drawn criticism over its environmental impact and regulatory approval.
- Visit Business Insider’s homepage for more stories.
Tesla CEO Elon Musk announced in a tweet Monday that he will “probably” take SpaceX’s internet-based satellite venture, Starlink, public at some point in the future.
“We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable,” Musk said.
He also promised to prioritize smaller investors in a potential public offering, saying the “public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.”
—Elon Musk (@elonmusk) September 28, 2020
Musk said last year that Starlink was an important new revenue stream for his California-based Space Exploration Technologies, or SpaceX.
SpaceX President and COO Gwynne Shotwell in February floated the idea of spinning Starlink off for an IPO in the coming years.
“Starlink is the right kind of business that we can go ahead and take public,” Shotwell