Twilio stock jumps in premarket on $3.2 billion Segment acquisition

0
24

Jeff Lawson, co-founder and chief executive officer of Twilio Inc., center, rings the opening bell on the floor of the New York Stock Exchange in New York, Sept.17, 2018.

Michael Nagle | Bloomberg | Getty Images

Cloud communications provider Twilio said Monday it is acquiring Segment, a customer data infrastructure company, for $3.2 billion in Twilio Class A common stock.

Shares of Twilio jumped more than 5% in premarket trading. If the company holds on to its premarket gains, the stock could open at a record high Monday.

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” said Peter Reinhardt, Segment’s co-founder and CEO. “We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. By joining forces and applying our customer data platform to Twilio’s engagement cloud, we’ll be able to make the entire customer experience seamless from end-to-end.”

The deal is expected to close in the fourth quarter of this year.

Earlier this month, Twilio said in a filing that it anticipates more third-quarter revenue than the $401 million to $406 million range it provided in August, sending its stock higher. Analysts polled by Refinitiv had expected $407.9 million in revenue for the third quarter.

Twilio stock has been on a tear. It reached a 52-week high on Friday, jumping to $310.64 per share. Shares of the company have gained more than 211% year to date, while the S&P 500 has climbed more than 7.6%.

Subscribe to CNBC on YouTube.

A Global Asset Management Seoul Korea Magazine

This post was originally published on this site