Twilio To Acquire SendGrid In $2B Deal

Comments
Loading...

SendGrid Inc SEND shares soared 14 percent in Monday's after-hours session. The company is a leading email API platform.

What Happened

Twilio Inc TWLO announced it has entered into a definitive agreement to acquire SendGrid in an all-stock transaction valued at $2 billion. The boards of directors of Twilio and SendGrid have each approved the transaction.

Why It Matters

The deal brings together the two leading communication platforms for developers, according to a press release. Twilio and SendGrid together serve millions of developers, have over 100,000 customers and have greater than $700 million annualized revenue run rate.

SendGrid CEO Sameer Dhlokia called it a tremendous day for SendGrid customers, employees and shareholders.

Meet leaders from the top fintech startups at the Benzinga Fintech Summit next month. Limited tickets available.

What's Next

The goal of the deal is to create one, best-in-class cloud communications platform for companies to communicate with customers across every channel.

"Increasingly, our customers are asking us to solve all of their strategic communications challenges - regardless of channel. Email is a vital communications channel for companies around the world, and so it was important to us to include this capability in our platform," said Jeff Lawson, Twilio's co-founder and CEO. "We believe this is a once-in-a-lifetime opportunity to bring together the two leading developer-focused communications platforms to create the unquestioned platform of choice for all companies looking to transform their customer engagement."

SendGrid was trading around $35 per share at time of publication. Twilio was down about 3 percent in after-hours trading.

Related Links:

The Dot-Com Dorm Room Birth Of Twilio: An Interview With Jeff Lawson

4 Reasons Why DA Davidson Is Bullish On Twilio

Market News and Data brought to you by Benzinga APIs

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!