Twilio to buy SendGrid for $2 billion in stock
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.
The bottom line: "Twilio’s current focus is on omnichannel communication, and email is obviously a major part of that. And while it offers plenty of services around voice, video and chat, email hasn’t been on its radar in the same way. This acquisition now allows it to quickly build up expertise in this area and expand its services there." — Frederic Lardinois, TechCrunch