Twilio Inc., a universal cloud communications platform announced yesterday, that it is acquiring SendGrid, a leading email API platform. Twilio focussed mainly on providing voice calling, text messaging, video, web, and mobile chat services. SendGrid, on the other hand, focused purely on providing email services.
With this acquisition, Twilio aims to bring tremendous value to the combined customer bases by offering services around voice, video, chat as well as email.
“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. The two companies share the same vision, the same model, and the same values,” mentioned Jeff Lawson, Twilio’s co-founder and chief executive officer.
The two companies will also be focussing on making it easy for developers to build a communications platform by delivering a single, best-in-class platform for developers. This would help them better manage all of their important communication channels including voice, messaging, video, and email.
Moreover, as per the terms of the deal, SendGrid will become a wholly-owned subsidiary of Twilio. Once the deal is closed, SendGrid’s common stock will get converted into Twilio’s stock.
“At closing, each outstanding share of SendGrid common stock will be converted into the right to receive 0.485 shares of Twilio Class A common stock, which represents a per share price for SendGrid common stock of $36.92 based on the closing price of Twilio Class A common stock on October 15, 2018. The exchange ratio represents a 14% premium over the average exchange ratio for the ten calendar days ending, October 15, 2018”, reads Twilio’s press release.
The boards of directors of both Twilio and SendGrid have approved the above-mentioned transaction.
“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”, said Sameer Dholakia, SendGrid’s CEO.
The acquisition will be closing in the first half of 2019. This is subject to the satisfaction of customary closing conditions, including approvals by shareholders of each SendGrid’s and Twilio’s.
“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”, said Lawson.
For more information, check out the official Twilio press release.