Twilio Completes Acquisition of Segment, the Market-leading Customer Data Platform
November 02 2020 - 9:00AM
Business Wire
Addition of Segment’s CDP to Twilio’s Customer
Engagement Platform Gives Businesses a Single View of the Customer
Across Channels
Enables Organizations to Create Personalized,
Timely, and Impactful Customer Experiences to Deepen Relationships
with Consumers
Flexible APIs Give Developers the Freedom to
Connect and Contextualize Data Sources to Better Inform Customer
Engagement
Twilio (NYSE: TWLO), the leading cloud communications platform,
today announced the successful completion of its previously
announced acquisition of Segment, the market-leading customer data
platform. This transaction is valued at approximately $3.2 billion
in Twilio Class A common stock, on a fully diluted and cash free,
debt free basis.
"Nearly every company is focused on acquiring, retaining and
growing their customer relationships through digital engagement,"
said Jeff Lawson, co-founder and CEO of Twilio. "However, the
biggest impediment to great digital engagement are the data silos
that prevent companies from truly understanding their customers.
With the addition of Segment, Twilio's Customer Engagement Platform
now enables companies to both understand their customer, and engage
with them digitally -- the combination is key to building great
digital experiences."
Segment will become a division of Twilio and will continue to be
led by Segment CEO Peter Reinhardt, reporting to Lawson.
“Exceptional customer engagement requires not only high-quality
data, but the infrastructure to activate those insights across
every channel and customer interaction,” said Peter Reinhardt,
co-founder and CEO of Segment. “By bringing Twilio and Segment
together, we will help businesses build a foundation of actionable
insights critical to engaging with customers based on their needs
and preferences to deliver a positive, seamless and effective
customer experience.”
Together, this acquisition will provide developers and
companies:
- Unparalleled insight into the way customers interact across
channels to create a single, unified view of the customer
journey.
- The ability to break down data silos to help businesses make
their customer engagement more personalized, timely and impactful
across channels.
- Access to the world’s leading cloud communications platform to
more effectively manage customer communications including SMS,
Messaging, Voice, Video, Email, Internet of Things (IoT) and
more.
- A flexible API that allows developers to connect sources of
customer data, such as web or mobile apps, with analytics tools,
without having to write new code.
- A steady supply of quality, high velocity first-party data that
easily integrates into existing systems.
- A single platform with views for the marketer, the contact
center agent, the product teams and the developers that reveal
data-driven insights to serve their individual needs.
“Customer engagement doesn’t begin or end at the arbitrary lines
between internal departments,” said Nicole France, Vice President
and Principal Analyst at Constellation Research. “Companies that
recognize the central role of customer experience to their success
are striving to unify customer engagement regardless of
communication channel or the parts of the organization involved.
They need better platforms to help them do so. That’s why the
combination of Twilio and Segment holds so much promise. The two
companies have complementary capabilities and comparable technical
depth to support personalized, tailored customer experiences. While
many customer data platforms primarily serve marketers, a
Twilio-Segment platform that begins with a customer service
perspective and incorporates both data and communications has the
potential to unify capabilities far beyond marketing.”
“Twilio’s acquisition of Segment will help customers better
address the increasingly digital-first nature of customer
engagement, and help deliver digital journey information to agents
when live interactions are required,” said Sheila McGee-Smith,
President & Principal Analyst, McGee-Smith Analytics. “This is
especially important for B2C customers who need a single view of
their customer to make customer engagement across every channel
more personalized, timely, and impactful.”
Twilio intends to provide financial updates on its fourth
quarter earnings call. Morgan Stanley & Co. LLC served as
exclusive financial advisor to Twilio and Cooley LLP as legal
advisor. Qatalyst Partners served as exclusive financial advisor to
Segment and Goodwin Procter LLP as legal advisor.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, which statements
involve substantial risks and uncertainties. The words such as
“will,” “expected,” “could,” and similar phrases that denote future
expectations or intent are intended to identify forward-looking
statements, including statements regarding the expected benefits of
combining Twilio’s cloud communications platform with Segment’s
customer data platform for businesses and developers. You should
not rely upon forward-looking statements as predictions of future
events. These statements are based on management's current
expectations, assumptions, estimates and beliefs. While Twilio
believes these expectations, assumptions, estimates and beliefs are
reasonable, such forward-looking statements are only predictions,
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those described in
the forward-looking statements.
The following factors, among others, could cause actual results
to differ materially from those described in the forward-looking
statements: adverse changes in general economic or market
conditions; Twilio’s ability to adapt its products to meet evolving
market and customer demands; Twilio’s ability to effectively manage
its growth; Twilio’s ability to compete effectively in an intensely
competitive market; any failure to fully realize the anticipated
benefits of the acquisition of Segment; any failure to achieve
expected synergies and efficiencies of operations as a result of
the acquisition; the ability of Twilio to successfully integrate
Segment’s technology, products, personnel and operations; any
failure to timely develop and achieve market acceptance of the
combined Twilio and Segment platforms; the loss of any Segment
customers; and Twilio’s ability to retain and motivate key
employees of Segment.
The forward-looking statements contained in this press release
are also subject to additional risks, uncertainties, and factors,
including those more fully described in Twilio’s most recent
filings with the Securities and Exchange Commission. Further
information on potential risks that could affect actual results
will be included in the subsequent periodic and current reports and
other filings that Twilio makes with the Securities and Exchange
Commission from time to time. Forward-looking statements speak only
as of the date such statements are made. Except as required by law,
Twilio undertakes no obligation to update or revise these
forward-looking statements for any reason, even if new information
becomes available in the future.
About Segment
Segment is the world’s leading customer data platform (CDP). Our
platform democratizes access to reliable data for all teams and
offers a complete toolkit to standardize data collection, unify
user records, and route customer data into any system where it’s
needed. More than 20,000 companies like Intuit, FOX, Instacart, and
Levi’s use Segment to make real-time decisions, accelerate growth,
and deliver compelling user experiences.
About Twilio
Millions of developers around the world have used Twilio to
unlock the magic of communications to improve any human experience.
Twilio has democratized communications channels like voice, text,
chat, video, and email by virtualizing the world’s communications
infrastructure through APIs that are simple enough for any
developer to use, yet robust enough to power the world’s most
demanding applications. By making communications a part of every
software developer’s toolkit, Twilio is enabling innovators across
every industry — from emerging leaders to the world’s largest
organizations — to reinvent how companies engage with their
customers.
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Investor Contact: Andrew Zilli ir@twilio.com
or
Media Contact: Carolyn Bos press@twilio.com
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