Twilio, the ever present communications platform, in the present day introduced its plan to amass the API-centric e-mail platform SendGrid for about $2 billion in an all-stock transaction. That’s Twilio’s largest acquisition so far, but in addition one which makes numerous sense on condition that each firms goal to make constructing communications platforms simpler for builders.
“The 2 firms share the identical imaginative and prescient, the identical mannequin, and the identical values,” mentioned Twilio co-founder and CEO Jeff Lawson in in the present day’s announcement. “We consider it is a once-in-a-lifetime alternative to convey collectively the 2 main developer-focused communications platforms to create the unquestioned platform of alternative for all firms seeking to remodel their buyer engagement.”
SendGrid will grow to be a completely owned subsidiary of Twilio and its widespread inventory will probably be transformed into Twilio inventory. The businesses count on the acquisition to shut within the first half of 2019, after it has been cleared by the authorities.
Twilio’s present focus is on omnichannel communication, and e-mail is clearly a significant a part of that. And whereas it presents plenty of services round voice, video and chat, e-mail hasn’t been on its radar in the identical means. This acquisition now permits it to shortly construct up experience on this space and develop its providers there.
SendGrid went public in 2017. On the time, it priced its inventory at $16. In the present day, earlier than the announcement, the corporate was buying and selling at just below $31, although that value clearly spiked after the announcement went public. That’s nonetheless down from a excessive of greater than $36.5 final month, however that’s in step with the general motion of the market in current weeks.
In the present day’s announcement comes shortly earlier than Twilio’s annual developer convention, so I count on we’ll hear much more about its plans for SendGrid later this week.
We requested Twilio for extra particulars about its plans for SendGrid after the acquisition closes. We’ll replace this submit as soon as we hear extra.