Twilio has agreed to acquire Segment for approximately $3.2 billion in an all-stock deal.
The transaction is expected to close in the fourth quarter of 2020.
“Combined with Twilio’s Customer Engagement Platform, we can create more personalized and impactful engagement across customer service, marketing, analytics, product and sales,” Jeff Lawson, co-founder and CEO of Twilio, said.
“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.
The transaction will accelerate Twilio’s growth with a combined addressable market of $79 billion.
The deal will assist Twilio to achieve the company’s vision of becoming the world’s leading customer engagement platform trusted by developers and companies.
Twilio two years ago announced the acquisition of API provider SendGrid for $2 billion in stock.
San Francisco-based Segment said in September that it worked with more than 20,000 customers including Intuit, FOX and Levi’s. It has 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.
Twilio last week estimated third-quarter sales above its previous forecast, as the shift to remote working and learning boosted demand for cloud services.
Twilio’s customers include American Red Cross, delivery unicorn Deliveroo and bank ING.
Twilio reported revenue of $400.8 million (+46 percent) during the second quarter of 2020. Twilio has 3,284 employees as of June 30, 2020.