Twilio, a Titan Flagship holding and what we consider to be the "Amazon (Web Services) of cloud communications," just announced a home run deal. It will acquire customer data platform startup Segment for $3.2 billion in stock.
We love this deal for three reasons:
“Data silos destroy great customer experiences. Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio's Customer Engagement Platform, we can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales.” Jeff Lawson, co-founder and CEO of Twilio
Quick Backdrop on Twilio
Why We Think It's a Home Run Deal
The businesses that deliver the best experiences are the ones that know their customers well and use customer data to provide more relevant interactions. However, wrangling these customer insights is extremely difficult as the information is typically spread across disparate systems and functions throughout an organization.
By combining the market leaders in cloud communication (Twilio) and customer data platforms (Segment), Twilio can now alleviate this pain for businesses by delivering a single, unified view that helps companies better understand their customers in order to engage more effectively.
TWLO is up +3% today on the news, a sign of how positive the market feels about this acquisition given the deal will be done as an all-stock transaction (~7% dilution for TWLO).
This deal marks Twilio becoming a "4-bagger" for Titan clients, our largest winner in firm history. It's a good reminder of the importance in sticking to one's investment thesis through volatility (as we did).
Quick Recap of Our History with TWLO
We remain bullish.
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