With cloud companies booming during the pandemic, one of the category’s recent public-company success stories is set to make a splash by spending billions to acquire one of its up-and-comers.
Cloud communications business Twilio has agreed to acquire customer data infrastructure company Segment for $3.2 billion, two sources tells Forbes. The deal which was not yet finalized as of Friday afternoon, is expected to be at least partially based on Twilio stock.
Segment and its CEO Peter Reinhardt didn’t respond to requests for comment. A Twilio spokesperson said the company couldn’t comment “on any rumors or speculation.”
Twilio, which trades at a market capitalization of more than $45 billion, went public in June 2016 on the strength of communications infrastructure that allows businesses to reach their customers through text messages, voice and video calls. The company counts the likes of the American Red Cross, delivery unicorn Deliveroo and bank ING as customers.