Cloud communications platform provider Twilio is planning to buy customer data infrastructure company Segment in a deal valued at $3.2 billion, Forbes reported.
The deal is expected to be at least partially based on Twilio stock. There is no confirmation from both Twilio and Segment.
Twilio two years ago announced the acquisition of API provider SendGrid for $2 billion in stock.
San Francisco-based Segment has recently been open to acquisition offers, according to the report.
Segment was founded in 2012 and appeared at No. 26 on this year’s Cloud 100 list of the world’s leading private cloud companies. The startup said in September that it worked with more than 20,000 businesses including Intuit, FOX and Levi’s, employing more than 550 people.
The company most recently raised $175 million in a Series D round led by Accel and GV. Other investors include startup accelerator Y Combinator, Thrive Capital, Kleiner Perkins, and Meritech Capital Partners. Segment had raised more than $283 million to date, per industry data provider PitchBook.
Cloud companies have seen a surge in demand this year as more businesses use their services to meet the demands of the switch to work from home due to the coronavirus outbreak, Reuters reported.
“Twilio is a beneficiary of pandemic-catalyzed digital transformation acceleration,” brokerage JP Morgan said in a note this month.
Last week, Twilio estimated third-quarter sales above its previous forecast, as the switch to remote working and learning boosted demand for cloud services.
Twilio, which trades at a market capitalization of more than $45 billion, went public in June 2016. The company’s communications infrastructure that allows businesses to reach their customers through text messages, voice and video calls. The company’s customers include the American Red Cross, delivery unicorn Deliveroo and bank ING.
Twilio reported revenue of $400.8 million (+46 percent) in the second quarter of 2020. Twilio has 3,284 employees as of June 30, 2020. Twilio recently named Michelle Grover as the company’s first chief information officer (CIO). Twilio SendGrid surpassed 3 trillion processed emails since inception.