Mergers and acquisitions

Twilio to buy SendGrid for $2 billion in stock

Jeff Lawson, founder, CEO and chairman of Twilio talking on a stage with blue back lighting
Jeff Lawson, founder, CEO and chairman of Twilio. Photo: Joan Cros Garcia/Corbis via Getty Images

Twilio (NYSE: TWLO) agreed to buy Denver-based email marketing company SendGrid (NYSE: SEND) for around $2 billion in stock, which works out to an implied price of $36.92 per share (19% premium to Monday's closing price for SendGrid).

Why it matters: Email continues to not be dead, despite all punditry to the contrary.

Twilio to acquire email company SendGrid

Photo of Twilio CEO Jeff Lawson at TechCrunch Disrupt.
Twilio CEO Jeff Lawson during TechCrunch Disrupt London 2015. Photo: John Phillips/Getty Images for TechCrunch

Twilio, which sells cloud-based communication tech, is acquiring email company SendGrid in an all-stock deal for $2 billion.

Why it matters: This is Twilio's biggest acquisition to date, which went public on the day of the Brexit vote.