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Twilio Inc., a software company, will purchase SendGrid Inc. for $ 2 billion, as part of a 100% equity transaction, to strengthen its suite of communication tools.
Twilio (twlo) will offer 0.485 shares for each share SendGrid (send), which values it at $ 36.92 per share, announced Monday the two companies in a statement. This is a 19% premium on SendGrid's closing price on Monday of 30.93 USD.
Twilio is a San Francisco-based cloud computing company that helps businesses communicate with their customers through a variety of methods, including phone and SMS. Uber Technologies Inc., headquartered in Denver, provides automated email services with a market value of $ 1.4 billion.
"Our customers are increasingly asking us to solve all their strategic communication issues, regardless of the channel," Twilio CEO Jeff Lawson said in a statement. "Email is an essential communication tool for businesses around the world, so it was important for us to include this feature in our platform."
The transaction is expected to close in the first half of 2019. The boards of directors of both companies have approved the transaction.
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