Cursory Pointers
- Twilio is going to buy Sendgrid for $2 billion
- Sendgrid shares closed at 18% higher than normal rates on 16th Oct 2018, Tuesday
- Twilio shares closed at $75.92 on 16th Oct 2018, Tuesday soon after the announcement
- Twilio and Sendgrid serve over 1 lac customers and millions of customers worldwide and have a $700 Million annual revenue run rate*
- SendGrid offers at-scale emailing services and Twilio eases customer communication
Twilio, a San Francisco, California based cloud communications business messaging company that builds Voice, SMS & Messaging applications on an API, recently announced its plan to acquire SendGrid, Denver, Colorado-based cloud-based email delivery platform for transactional and marketing email. This decision was taken to be an all-stock transaction for $2 billion and is going to become Twilio’s largest transaction till date. This will accentuate the customer communication platform for the developers.
Having the same mission, vision and values the two colossi are going to cork up well. This coalesces is going to breed a rich platform for customer engagement via voice, SMS, video, smart speakers like Alexa, and messaging apps like Facebook Messenger and WhatsApp etc.
With this acquisition, Sendgrid is going to become a fully grown subsidiary of Twilio and this involves complete stock conversion. This acquisition is expected to close in the first half of 2019 as soon as all the authorities clear it.
The most important thing to remember about communication is to be careful when you write. It’s easy to miscommunicate via email because the emotional indicators are missing. But it is as well an omnipresent channel to convey things. Emails give the option to read out loud, go back and change if there is a possibility that your tone can be misunderstood in any way.
While Twilio and Sendgrid as independent entities could not offer all the voice, video, chat and email altogether, this merger will turn out to be a respite and bring the forces back on track. Moreover, this merger is going to allow it to quickly build up expertise in this area and expand its services simultaneously.
The result of this merger is going to be an unquestioned platform that is going to focus on the developer to customer communication and quickly convert customer engagement. Sendgrid’s stock weighed $36.5 soon after the announcement of acquisition in the past week.
Twilio Customer & Developer Conference, in San Francisco, held on 17th and 18th October – Signal, further simplified how builders reimagine software applications that power customer engagement and convert human interaction every day.
According to Jeff Lawsonm co-founder & CEO of Twilio, they have seen life journey of SendGrid build the industry’s best cloud-based email delivery applications. This will eventually enable Twilio to accelerate the journey towards shared objective approach on one trusted platform to propel the future of customer communication.