(Reuters) – Cloud communications platform provider Twilio Inc said on Monday it would buy customer data platform Segment for $3.2 billion in an all-stock deal.
Twilio’s shares are up 8.1% to $331.13 in mid-afternoon trading.
The announcement of the deal, expected to close in the fourth quarter of Twilio’s fiscal 2020, comes after the company estimated third-quarter sales above its previous forecast earlier this month.
Cloud companies have seen a surge in demand this year as more businesses use their services to meet the demands of the switch to work from home due to the COVID-19 pandemic.
Morgan Stanley & Co LLC was Twilio’s financial adviser, while Cooley LLP was its legal adviser. Qatalyst Partners was Segment’s financial adviser and Goodwin Procter LLP acted as its legal adviser.
Reporting by Akanksha Rana in Bengaluru; Editing by Shounak Dasgupta