Cloud Computing Firm Twilio Buys E-mail Platform SendGrid For $2 Billion


San Francisco-based cloud-computing company Twilio has acquired email API platform SendGrid for $2 billion in an all-stock transaction deal.


The company said in a statement that Twilio will offer 0.485 shares for each share of SendGrid stock, valued at $36.92 per share. The exchange ratio represents a 14% premium over the average exchange ratio for the 10 calendar days ending October 15, 2018.

Based in Denver, SendGrid is a digital communications platform enabling over 74,000 customers to send more than 45 billion emails every month. Its clients include Uber, Spotify, Airbnb, Glassdoor and Yelp among others.

Twilio said that the deal could provide “tremendous value to the combined customer bases.” The resulting company would offer developers a single platform to manage all of their important communication channels. The two companies together currently drive more than half a trillion customer interactions annualized and growing rapidly.

The boards of both companies have approved the transaction and the deal is expected to close in the first half of 2019.

“Increasingly, our customers are asking us to solve all of their strategic communications challenges – regardless of channel. Email is a vital communications channel for companies around the world, and so it was important to us to include this capability in our platform,” as Jeff Lawson, Twilio’s co-founder and chief executive officer said in a statement.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Twilio and Goodwin Procter LLP is acting as legal counsel to Twilio. While Morgan Stanley & Co. LLC. is serving as exclusive financial advisor to SendGrid and Cooley LLP and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal counsel to SendGrid.


original content via forbesmiddleeast

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