Cloud-communications firm Twilio is in talks to invest as much as $750 million in Syniverse Technologies, the Wall Street Journal reported.
The investment could be followed by a merger between telecommunications services company Syniverse and a special-purpose acquisition company to take it public, the report said.
The deal values Syniverse at around $2 billion to $3 billion including debt.
There is no guarantee that Syniverse, backed by private-equity firm Carlyle Group will go public, either through a SPAC deal or an IPO.
For Syniverse, the Twilio deal involves a commercial arrangement that would send a significant amount of business its way. Syniverse may also use proceeds from a SPAC deal to make acquisitions.