Twilio, a leading cloud communication platform, has made a significant move to enhance customer engagement by acquiring Segment, a customer data platform. Segment's technology will be integrated into Twilio's platform to provide a more comprehensive customer experience.
With this acquisition, Twilio aims to help businesses better understand their customers and deliver personalized interactions. By combining Twilio's communication capabilities with Segment's data platform, companies can create more meaningful relationships with their customers.
The acquisition is expected to enhance Twilio's ability to provide real-time customer insights and automate customer journeys.
Readers also liked: Data Custodian
Acquisition Details
Twilio acquired Segment for $3.2 billion.
The deal was officially announced three weeks ago, and it closed just a month after rumors of the acquisition began circulating.
Twilio CEO Jeff Lawson and Segment CEO Peter Reinhardt knew each other before coming to terms, which might have helped accelerate the process.
The acquisition was made in an all-stock deal.
Combining Twilio's communications APIs with Segment's customer data tools creates a powerful set of tooling for developers to easily add functions to their applications.
Twilio's 2018 acquisition of SendGrid also plays a role in this combination, enabling the creation of more complete applications for interacting with customers at every level.
Discover more: Underwrite a Deal
What It Means
Twilio's acquisition of Segment is a huge deal, with a $3.2 billion price tag in stock, setting a new high-water mark for CDP valuations.
The acquisition will extend Twilio's value proposition beyond messaging to central control of data, which is a huge opportunity for the company. Twilio CEO Jeff Lawson believes it's just the start of the opportunity to bring data and APIs together to build more relevant engagement across the board.
Segment will help Twilio address the $79 billion market of customer engagement, which is a massive space. Segment powers “good data” for its clientele of B2B and B2C companies, unifying customer data from myriad touch points and maintaining a consolidated record for each user.
Segment employs roughly 600 people globally and has annual revenue of approximately $150 million, which is a significant addition to Twilio's resources.
The acquisition is also a strategic move by Twilio to build a customer engagement platform, with Twilio Engage and the acquisition of Segment moving them in that direction.
If this caught your attention, see: Virtual Data Room
Customer Impact
Twilio's acquisition of Segment is expected to have a significant impact on customers. With Segment's customer data platform, Twilio will be able to provide more comprehensive customer insights to its users.
Segment's platform helps businesses collect, organize, and make sense of customer data from various sources. This will enable Twilio to offer more advanced customer engagement tools to its users.
Twilio's customers will benefit from the integration of Segment's capabilities, which will allow for more personalized and targeted customer experiences. This is expected to lead to increased customer satisfaction and loyalty.
Segment's platform will also enable Twilio's customers to make more informed decisions about their customer engagement strategies. By having access to more comprehensive customer data, businesses will be able to better understand their customers' needs and preferences.
If this caught your attention, see: Report Shows Data Segmented
Frequently Asked Questions
Will Twilio sell segments?
No, Twilio has confirmed it will retain its Segment business after an operational review. The business, which includes Twilio Engage and previously Flex, will continue to operate under Twilio's ownership.
Featured Images: pexels.com
