Twilio is set to acquire customer data infrastructure startup Segment for $3.2 billion, Forbes reported on Friday citing two anonymous sources familiar with the matter.
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The deal, which hadn’t been finalized until Friday afternoon, might be partially based on Twilio’s (TWLO) stock, according to the Forbes report. Segment has been on the hunt for takeover offers, the report said.
Segment offers cloud-based customer data platform that helps organizations collect, clean, and control customer data. Forbes in its report said that the company had received $175 million in a Series D round of funding in April 2019, which valued it at $1.5 billion. As of September last year, the company had more than 550 employees and has worked with over 20,000 businesses including Intuit, FOX and Levi’s. (See TWLO stock analysis on TipRanks)
In a note to investors on Oct. 10, Oppenheimer analyst Ittai Kidron said that he views “Segment as a unique match for Twilio, similar to SendGrid, that can significantly round out and enhance Twilio’s growth and market position.” Kidron reiterated his Buy rating and the price target of $300 (2% downside potential) on the stock.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 18 Buys and 4 Holds. With shares up nearly 216% year-to-date, the average price target of $313.75 implies further upside potential of a moderate 2.5% to current levels.
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