Leading cloud communications software provider Twilio is acquiring cloud email services provider SendGrid for approx $2 billion.
While Twilio provides software to enterprises for engaging with customers through voice, SMS, video, smart speakers and messaging platforms, SendGrid does the same through automated email services.
With acquisition, Twilio will combine the capabilities of SendGrid to its platform. This will expand Twilio’s set of communication tools with email API platform. Aim of acquisition is to drive tremendous value to combined customer bases, the companies said.
“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 chief executive officer.
“The two companies share the same vision, the same model, and the same values. We believe this is a once-in-a-lifetime opportunity to bring together two leading developer-focused communications platforms to create the unquestioned platform of choice for all companies looking to transform their customer engagement.”
Cloud APIs provided by Twilio allow developers to build intelligent communication systems. When the company was founded around a decade ago, it started with voice communication system. Over the time, it evolved to add chat, SMS, smart speakers like Alexa, and messaging apps like WhatsApp and Facebook Messenger.
However, the email API platform was still missing. To add that, Twilio went for SendGrid because of its developer-first approach towards building email delivery solutions.
“This is a tremendous day for all SendGrid customers, employees and shareholders,” said Sameer Dholakia, SendGrid’s chief executive officer.
“Our two companies have always shared a common goal – to create powerful communications experiences for businesses by enabling developers to easily embed communications into the software they are building. Our mission is to help our customers deliver communications that drive engagement and growth, and this combination will allow us to accelerate that mission for our customers.”
The transaction will close in first half of 2019, subject to satisfaction of customary closing conditions.