- General
- October 15, 2018
- 5 minutes read
Twilio inks agreement to acquire SendGrid for $2 billion in stock
Twilio CEO Jeff Lawson Twilio Cloud communications software provider Twilio has now reached a deal to acquire e-mail marketing company…
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| Twilio CEO Jeff Lawson
Twilio
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Cloud communications software provider Twilio has now reached a deal to acquire e-mail marketing company SendGrid in an all-stock transaction valued at approximately $2 billion. By deal close, each outstanding SendGrid stock will be exchanged for 0.485 shares of Twilio Class A common stock in what represents a 14% premium over the average exchange ratio for the ten calendar days ending today.
This transaction is subject to customary closing conditions and is expected to close in the first half of next year. Goldman Sachs and Morgan Stanley are serving as exclusive financial advisors to Twilio and SendGrid respectively for this transaction.
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| Twilio COO George Hu
Twilio
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“Increasingly, our customers are asking us to solve all of their strategic communications challenges – regardless of channel. Email is a vital communications channel for companies around the world, and so it was important to us to include this capability in our platform,” Twilio co-founder and CEO Jeff Lawson said in a statement.
“The two companies share the same vision, the same model, and the same values. We believe this is a once-in-a-lifetime opportunity to bring together the two leading developer-focused communications platforms to create the unquestioned platform of choice for all companies looking to transform their customer engagement.” Lawson stated.
“This is a tremendous day for all SendGrid customers, employees and shareholders,” SendGrid CEO Sameer Dholakia also added.
“Our two companies have always shared a common goal – to create powerful communications experiences for businesses by enabling developers to easily embed communications into the software they are building. Our mission is to help our customers deliver communications that drive engagement and growth, and this combination will allow us to accelerate that mission for our customers.”
SendGrid was founded in 2009 and was incubated through the TechStars accelerator program. The Colorado based company went public just last year November which marked the first IPO from the TechStars program. Both companies together have over 100 thousand customers and a more than $700 Million Annualized Revenue Run Rate while serving millions of developers.
