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