- Twilio buys Segment, for $3.2 Billion
- Segment helps you collect, and control customer data
- Segment provides developers with direct access to customer data
What is Twilio-Segment Connection?
Twilio Inc. said on Monday it would buy customer data platform Segment for $3.2 billion. Twilio’s shares rose more than 9% to $335 in premarket trading.
The announcement of the deal comes after the company estimated third-quarter sales above its previous forecast. Following the deal, Segment will become a part of Twilio.
Morgan Stanley & Co LLC was Twilio’s financial adviser, while Cooley LLP was its legal adviser. Qatalyst Partners was Segment’s financial adviser and Goodwin Procter LLP acted as its legal adviser.
The pandemic has forced businesses to change the way they interact with customers. This includes how they deliver goods and services, or how they communicate. There is one common denominator, which is that everything is being forced to be digitally driven much faster.
To some extent, that’s what drove Twilio to acquire Segment for $3.2 billion today. When you get down to it, the two companies fit together well, and expand the platform by giving Twilio customers access to valuable customer data.
Why did the Acquisition take place?
Chee Chew, Twilio’s Chief Product Officer, says while it may feel like the company is pivoting in the direction of customer experience, they don’t necessarily see it that way.
“More customers are realizing that delivering a great customer experience is key to survive through the pandemic, and thriving as the economy recovers — and are willing to spend to do this even in uncertain times,” said Laurie McCabe, co-founder and partner at SMB Group
Certainly, Chew recognized that Segment gives them something they were lacking by providing developers with direct access to customer data, and that could lead to some interesting applications.
“The data capabilities that Segment has been providing a full view of the customer. It really layers across everything we do. I think of it as a horizontal add across the channels and extending beyond. So I think it really helps us advance in a different sort of way towards getting the holistic view of the customer and enabling our customers to build intelligence services on top,” he said.
