SendGrid Inc SEND shares soared 14 percent in Monday's after-hours session. The company is a leading email API platform.
What Happened
Twilio Inc TWLO announced it has entered into a definitive agreement to acquire SendGrid in an all-stock transaction valued at $2 billion. The boards of directors of Twilio and SendGrid have each approved the transaction.
Why It Matters
The deal brings together the two leading communication platforms for developers, according to a press release. Twilio and SendGrid together serve millions of developers, have over 100,000 customers and have greater than $700 million annualized revenue run rate.
SendGrid CEO Sameer Dhlokia called it a tremendous day for SendGrid customers, employees and shareholders.
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What's Next
The goal of the deal is to create one, best-in-class cloud communications platform for companies to communicate with customers across every channel.
"Increasingly, our customers are asking us to solve all of their strategic communications challenges - regardless of channel. 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," said Jeff Lawson, Twilio's co-founder and CEO. "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."
SendGrid was trading around $35 per share at time of publication. Twilio was down about 3 percent in after-hours trading.
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