Jeff Lawson, CEO, Twilio.  Photo credit: JD Lasica on Flickr, licensed under Creative Commons

Twilio, the publicly-traded cloud communications company, has announced that it’s reached a deal to acquire Segment in an all-stock deal that amounts to $3.2 billion, corroborating a recent report of the company looking to do just that. Under the terms of the acquisition, Segment’s shareholders will receive roughly $3.2 billion in Twilio Class A shares, with the deal expected to be completed in the fourth quarter of this year. 

A $3.2 billion acquisition marks a big win for Segment, which as a private upstart has raised about $284 million in total funding and was valued at $1.5 billion from its most recent financing round. Among early investors set to score big wins from Segment’s acquisition include venture capital firms like Thrive Capital, Accel, SV Angel, Alphabet’s GV, and Y Combinator.

Segment was founded in 2012, implying only 8 years from inception to a $3 billion+ acquisition. As a service, it’s basically a platform used by enterprises to collect and manage customer data. Twilio coughing up $3.2 billion in stock to acquire Segment is a testament to very favorable market conditions for the cloud communications company as it’s seen its stock soar over 200% this year amid in a large boost in the demand for cloud communication services on the heels of the coronavirus pandemic. 

Segment’s exit to Twilio marks one of the biggest technology acquisitions in this year.

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