California’s cloud messaging platform Twilio to buy Segment at $3.2bn buyout deal

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California’s cloud messaging platform Twilio to buy Segment at $3.2bn buyout deal

Twilio Inc., the San Francisco, California-headquartered American cloud communication platform had been mulling an option to purchase a nine-year-old customer data infrastructure start-up Segment at a $3.2 billion buyout deal, a Forbes Magazine report published late on Friday had unveiled citing sources who wished to remain anonymous given the sensitivity of the issue.

In point of fact, latest media headline on Twilio’s push to purchase the customer data infrastructure start-up Segment came forth less than a month after the San Francisco-based company had put itself up for sale, the Forbes report revealed.

More importantly, Friday’s Forbes Magazine report had also quoted two of its sources as saying that the two companies could not reach a final accord as of Friday afternoon, though the financial terms of the deal would likely to involve Twilio stocks.

Apart from that, the San Francisco-based customer data infrastructure start-up, which had raised roughly $175 million in a Series D funding round back in the April of 2019, said last month that the firm had been engaged with more than 20,000 businesses including Intuit, Levi’s and Fox and employing over 550 workers.

Twilio set to purchase Segment as cloud computing demands surge

In tandem, followed by the reveal of Friday’s Forbes Magazine report, industry analysts were quoted saying that the San Francisco-based Segment appeared to be benefitting from the pandemic-led upsurge in work-at-home employees, since more and more businesses had been evading in-house officespaces due to the pandemic outbreak.

Besides, latest move of Twilio Inc.

to purchase the San Francisco-headquartered Segment came against the backdrop of a robust rise in cloud computing as beforementioned, as Twilio had reported its third-quarterly earnings above estimates last week. Meanwhile, adding an abrupt transmutation towards remote working alongside a strident demand for cloud computing services, US brokerage JP Morgan said in a client note earlier this month, “Twilio is a beneficiary of pandemic-catalysed digital transformation acceleration.