Twilio Segment Acquisition Might Make it an M&A Target

Twilio Wants to Be the Go-To Engagement Platform

Twilio says that the transaction will quicken its development with a combined total addressable market of $79 billion, bringing Twilio a step closer to achieving the company’s vision of becoming “the world’s leading customer engagement platform trusted by developers and companies globally.”

Twilio
Photographer: Carlos Muza | Source: Unsplash

Largest Acquisition of CDP Provider to Date

The Twilio move is by far the largest acquisition of a CDP vendor to date. It also breaks the streak of silence in the segment, as there were just two funding rounds over $10 million and only one acquisition in the first half of this year, according to data from the CDP Institute.

Is Twilio an M&A Target?

However, Twilio’s acquisition of Segment could interest the likes of Salesforce, Amazon, Microsoft, and Adobe as a potential buyers of that company, according to Wall Street analysts said.

RealTime Capture of Customer Activity

Segment’s technology will let Twilio clients capture their customers’ activity in real time. For example, if a shopper places an item into their virtual shopping basket, Twilio’s communications platform alert the shopper that a discount is available. The company’s unique position in the communications platform as a service (CPaaS) market is a layer of the software stack in which most enterprise software vendors have no presence. And if the customer data and voice- and text-enabled digital communications layers start to merge as Twilio expects, larger vendors may see Twilio as a strategic target. In fact, both Amazon and Microsoft have already shown interest in this layer.

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Carpenter Wellington PLLC

Carpenter Wellington PLLC

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Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.