Software vendor Twilio is to splurge US$3.2 billion on customer data start-up Segment in an all-stock deal.
In what is its biggest acquisition to date, Twilio will gain access to Segment’s platform, which allows organisations to move customer data from one app to another using APIs.
The deal, made “in Twilio Class A common stock, on a fully diluted and cash free, debt free basis”, is expected to close by the end of this calendar year.
“Data silos destroy great customer experiences,” said Jeff Lawson, co-founder and CEO of Twilio.
“Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio's Customer Engagement Platform, we can create more personalised, timely and impactful engagement across customer service, marketing, analytics, product and sales.”
According to Twilio, the deal will give it a combined total addressable market of US$79 billion.
The boards of directors of Twilio and Segment have each approved the transaction, the company added.
The news comes two years after Twilio bought automation services provider SendGrid in another all-stock deal worth US$2 billion. That deal gave Twilio a US$700 million annualised revenue run rate.
In January 2019, Twilio appointed a new channel chief to replace Ron Huddleson, who had unexpectedly passed away in October 2018.
In doing so, the company then promoted Chetan Chaudhary to the role of global vice president of partners. However, Chaudhary has since been replaced by Glenn Weinstein, Twilio's chief commercial officer, who now looks after the partner program as part of his remit.