Twilio, the publicly-traded cloud communications company, has sought to strategically team up with an old-guard provider of mobile and wireless communications technology named Syniverse, with a formal business partnership just announced between both parties that’ll see Twilio invest up to $750 million for a minority stake in Syniverse under its terms.

• Twilio has agreed to invest up to $750 million in cash for a minority stake in Syniverse, buying the stake from the company’s current owner which is the private equity firm Carlyle Group.

• The partnership between Twilio and Syniverse will see both companies enter into a major business partnership that entails a wholesale agreement whereby Syniverse will process, route and deliver application-to-person (A2P) messages originating and/or terminating between Twilio’s customers and mobile network operators.

• On Syniverse’s end of the deal, the company is getting a business boost by providing services for Twilio which is one of the biggest cloud communications tech providers globally while on Twilio’s end, its platform will get a capability boost thanks to direct access to mobile communications technology from Syniverse.

• Twilio reported having about $3 billion in cash and short-term investments at hand as of the end of 2020, and then has now agreed to cough out up to 25% of that amount to invest in Syniverse. Such implies a very serious deal for the company.

• It’s rumored that Twilio’s investment in Syniverse is a precursor to a planned public listing for the company by its private equity owner, either through a traditional IPO or through a merger with a special-purpose acquisition company (SPAC).

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