Twilio to acquire customer data startup Segment

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Twilio has plans to acquire customer data startup firm Segment for between USD 3 and USD 4 billion. The deal is under works and could be announced soon.

Twilio and Segment are both API companies. Together they can end up creating an easy method for developers to tap into a specific type of functionality without writing a lot of code. However, both Segment and Twilio have still not commented on the deal.

Segment, a customer data platform, has made a name for itself and has been working on providing a set of APIs to pull together customer data from a variety of sources like your CRM tool, customer service application, and website and all that put together into a single view of the customer, which is usually the goal of every company that is in involved in the customer information business.

However, since its launch in 2008 Twilio’s main focus has been on making it easy to embed communications functionality into any app.

The acquisition comes almost two years to the date after Twilio announced it would acquire API provider SendGrid for USD 2 billion in stock. Twilio shares are up since then, as Twilio has proven a strong performer on the public markets.

Twilio, the cloud communications platform has plans to combine Twilio’s core API mission, especially Flex, with the ability to pull customer data with Segment and create customized email or ads with SendGrid.

This deal will enable Twilio to expand in the market beyond pure core communications capabilities and the deal may likely come at the cost of around USD 5 billion for the two companies. This could likely end up proving to be a good deal and could turn out to be a substantial business as more and more companies these days are looking for means to communicate with their customers in more relevant ways across multiple channels.

Segment believed that a traditional CRM wasn’t strong enough for the enterprise to properly manage things. Segment made the move to provide customer data infrastructure to offer a more unified experience. Now after the deal is finalized under Twilio, Segment can continue to build key integrations as they have for Twilio data, which is being used globally inside Fortune 500 companies already.

Segment was founded in 2011 and raised over USD 283 million, according to Crunchbase data. Its most recent raise was USD 175 million in April on a USD 1.5 billion valuation. Twilio stock closed at USD 306.24 per share on Friday up USD 2.39 percent.

Let’s wait and watch for the deal to be finalized and see what change it brings in Twilio and Segment’s respective market.