Twilio has entered into a definitive agreement to acquire Segment for approximately $US3.2 billion in Twilio Class A stock. The transaction is expected to close in the fourth quarter of 2020.

The US Cloud communications platform-as-a-service company says the acquisition will accelerate its development of a customer engagement platform. Segment will become a division of Twilio.

“Data silos destroy great customer experiences,” said Jeff Lawson, co-founder and CEO of Twilio. “Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio’s Customer Engagement Platform, we can create more personalised, timely and impactful engagement across customer service, marketing, analytics, product and sales. We are thrilled to welcome Segment to the Twilio team.”

Twilio says by combining the market leaders in the Cloud communication and customer data platform (CDP) spaces, it can now alleviate the pain of disparate data for businesses by delivering a single, unified view that helps companies better understand their customers in order to engage more effectively.

“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 transaction will accelerate Twilio’s growth with a combined total addressable market of $US79 billion, bringing Twilio one step closer to achieving the company’s vision of becoming the world’s leading customer engagement platform trusted by developers and companies globally.

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