Twilio Could Invest $750M In Carlyle Group's Syniverse: WSJ


Cloud communications company Twilio Inc (NYSE: TWLO) to invest up to $750 million in Carlyle Group Inc (NASDAQ: CG) owned messaging company Syniverse Technologies ahead of the latter’s potential public listing, the Wall Street Journal reports.

  • Reportedly, the investment could be followed by a merger between Syniverse and a special-purpose acquisition company (SPAC). However, there is no guarantee regarding a listing via a SPAC deal or an IPO.
  • The deal could potentially value Syniverse between $2 billion to $3 billion, including debt. 
  • Companies nowadays prefer SPACs as it enables them to go public without a business and then seek a business to merge. The resulting transaction offers the target a listing. A SPAC option is more likely as the Twilio deal can send a substantial chunk of business to Syniverse. Syniverse may also utilize the SPAC deal proceeds for acquisitions.
  • Twilio’s valuation rose from $15 billion to over $67 billion within a year from the pandemic-induced demand for cloud services. The company acquired customer-data firm Segment for around $3 billion, tapping its stock price appreciation.
  • Salesforce.Com Inc (NYSE: CRM) acquired messaging platform Slack Technologies Inc (NYSE: WORK) last year for around $27.7 billion. Such cloud computing deals with creating remote work infrastructure could pose competition to software titans, including Microsoft Corp (NASDAQ: MSFT).
  • Carlyle agreed to take Syniverse private in 2010 in a deal valued at over $2 billion which did not go ahead. However, the Twilio deal and an impending listing could work in Syniverse’s favor.
  • Price action: TWLO stock has gained 2.32% at $402 in the pre-market session on the last check Monday.
Market News and Data brought to you by Benzinga APIs
Posted In: M&ANewsTechMediaWall Street Journal
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!