Cloud-communications firm Twilio has agreed to buy toll-free messaging provider Zipwhip for about $850 million in cash and stock.
Zipwhip, which provides a platform for businesses to use their landline or toll-free numbers to send text messages to customers, will become part of Twilio’s messaging business unit. The deal is expected to modestly add to Twilio’s gross margin and revenue.
The Zipwhip deal is expected to close by the end of 2021. Twilio in March announced that it would invest up to $750 million in telecommunications services company Syniverse Technologies.