Cloud communications platform supplier Twilio Inc plans to purchase buyer knowledge infrastructure firm Segment for $3.2 billion, Forbes reported on Friday.
The deal, which had not been finalized as of Friday afternoon, was anticipated to be a minimum of partially primarily based on Twilio inventory, the report added, citing two sources it didn’t identify.
San Francisco-based Segment has not too long ago been open to acquisition presents, based on the report.
Twilio declined to remark to Reuters. Segment was not instantly obtainable for remark outdoors common enterprise hours.
Segment raised $175 million in a Series D funding spherical in April 2019. The startup mentioned in September that it labored with greater than 20,000 companies together with Intuit, FOX and Levi’s, using greater than 550 folks.
Cloud firms have seen a surge in demand this yr as extra companies use their providers to fulfill the calls for of the change to do business from home as a result of coronavirus outbreak.
“Twilio is a beneficiary of pandemic-catalyzed digital transformation acceleration,” brokerage JP Morgan mentioned in a be aware this month.
Last week, Twilio estimated third-quarter gross sales above its earlier forecast, because the change to distant working and studying boosted demand for cloud providers.