According to a report in Forbes, Twilio Inc TWLO.N the cloud communications platform as a service (CPaaS) company based in San Francisco, California, intends to purchase customer data infrastructure company Segment for around $3.2 billion.
Twilio Inc TWLO.N, founded in 2008, had not finalised the deal by the weekend, negotiations between the two tech companies are believed to be at the final stages. Twilio which has a market capitalization of over $45 billion looks set to agree on a deal with Segment that is understood to be at least partially based on Twilio stock.
Segment is also an API company and is also based in San Francisco. Established in 2012, the company featured at No. 26 on 2020’s Cloud 100 list of the world’s leading private cloud firms.
Employing over 550 people, Segment raised $175 million in a Series D funding round, led by Accel and GV in April 2019. At the time, the start-up was valued at $1.5 billion.
As per industry data provider PitchBook, to date, Segment has raised more than $283 million in funding.
At the time of writing, there has no been official word from Segment and its CEO Peter Reinhardt. No denial or confirmation either from Twilio, although an announcement is expected on Monday 12th October when business hours resume after the weekend’s closure.
Twilio Inc TWLO.N Stock Closes Higher
Although reports surfaced late on Friday night, Twilio Inc TWLO.N stock still closed up 2.39% at 306.24.
The company stock has been on a steady increase since March’s low of around $70. The global pandemic has caused a surge in demand this year for cloud companies as more and more businesses utilise their services to satisfy the huge demands of the labor force switching to work from home.
Just last week, Twilio estimated third-quarter sales higher than its previous forecast.
