Twilio to Buy SendGrid for $2 Billion in Bid to Expand Products
(Bloomberg) -- Twilio Inc., a software maker, will buy SendGrid Inc. for $2 billion in an all-stock transaction to boost its suite of communication tools.
Twilio will offer 0.485 shares for each share of SendGrid stock, which values it at $36.92 per share, the companies said Monday in a statement. That’s a 19 percent premium on SendGrid’s Monday closing price of $30.93.
Twilio is a San Francisco-based cloud-computing company that helps businesses communicate with their customers through a variety of methods, including phone and text message. Its clients include Uber Technologies Inc. SendGrid, based in Denver, provides automated email services and has a market value of $1.4 billion.
“Increasingly, our customers are asking us to solve all of their strategic communications challenges -- regardless of channel,” Twilio Chief Executive Officer Jeff Lawson said in the statement. “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 transaction is expected to close in the first half of 2019. The boards of both companies have approved the transaction.
©2018 Bloomberg L.P.