Twilio To Buy SendGrid For $2 Bln

(RTTNews) - Twilio (TWLO) Monday said it has agreed to buy SendGrid in an all-stock transaction valued at about $2 billion. SendGrid's shares jumped 14 percent following the news.

Under the terms of the deal, a subsidiary of Twilio will be merged with and into SendGrid, with SendGrid surviving as a wholly-owned subsidiary of Twilio. At closing, each share of SendGrid common stock will be converted into the right to receive 0.485 shares of Twilio Class A common stock, representing a per share price for SendGrid common stock of $36.92 based on the closing price of Twilio closing price on October 15, 2018.

The transaction is expected to close in the first half of 2019, subject to customary closing conditions, including shareholder approvals.

The boards of directors of Twilio and SendGrid have each approved the transaction.

Both companies will report their financial results for the third quarter on November 6, 2018. However, both Twilio and SendGrid said they have exceeded the guidance earlier provided. Guidance for the combined company will be provided after the proposed transaction has closed.

"Increasingly, our customers are asking us to solve all of their strategic communications challenges - regardless of channel. Email is a vital communications channel for companies around the world, and so it was important to us to include this capability in our platform," said Jeff Lawson, Twilio's co-founder and chief executive officer.

TWLO closed Monday's trading at $76.13, up $1.13 or 1.51%, on the Nasdaq. The stock, however, slipped $1.88 or 2.47% in the after-hours trade.

SEND closed trading at $30.93, down $0.07 or 0.23% on the Nasdaq. The stock, however, gained $4.42 or 14.29% in the after-hours trading.