Enterprise communication software producer Twilio agreed today to acquire US-based customer data platform developer Segment for $3.2bn in shares, enabling internet and technology group Alphabet’s GV subsidiary to exit.
Founded in 2012, Segment has built a software platform that allows users to standardise and unify the collection and management of customer data so it can be efficiently channelled into other parts of the company.
Twilio will pay for the deal entirely through common stock, and the valuation is more than double that at which Segment last raised money, in a $175m series D round co-led by GV in April 2019 that increased its overall funding to $284m.
Private equity firm Meritech Capital and venture capital firm Accel co-led the 2019 round with GV, investing together with Thrive Capital, Y Combinator’s Continuity fund, Sapphire Ventures and eVentures.
GV and Y Combinator Continuity co-led the company’s $64m series C round in 2017. SV Angel, New Enterprise Associates and existing backers Accel and Thrive Capital also took part, and Segment’s earlier investors include Kleiner Perkins Caufield & Byers (now Kleiner Perkins) and eVentures.
Jeff Lawson, Twilio’s co-founder and chief executive, said: “Data silos destroy great customer experiences. Segment lets developers and companies break down those silos and build a complete picture of their customer.
“Combined with Twilio’s Customer Engagement Platform, we can create more personalised, timely and impactful engagement across customer service, marketing, analytics, product and sales. We are thrilled to welcome Segment to the Twilio team.”
