Cloud communications provider Twilio to buy SendGrid in $2 billion deal

(Reuters) – Cloud communications provider Twilio Inc said on Monday it would buy bulk email sender SendGrid Inc in an all-stock deal valued at about $2 billion.

A banner for communications software provider Twilio Inc., hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company’s IPO in New York City, U.S., June 23, 2016. REUTERS/Brendan McDermid

SendGrid shareholders will receive 0.485 shares of Twilio Class A common stock per share held, or about $36.92 per share based on Twilio’s Monday close. The offer represents a premium of 19.4 percent to SendGrid’s Monday close.

SendGrid’s shares rose 14.5 percent to $35.40, while those of Twilio fell 4.5 percent to $73 in extended trading.

The equity value of the deal is about $1.71 billion, according to calculations based on Refinitiv data.

The deal helps developers to “manage all of their important communication channels — voice, messaging, video, and now email as well,” Twilio said in a statement.

The companies expect the deal to close in the first half of 2019.

Goldman Sachs is the financial adviser to Twilio, while Morgan Stanley is SendGrid’s financial adviser.

Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila

Our Standards:The Thomson Reuters Trust Principles.

The post Cloud communications provider Twilio to buy SendGrid in $2 billion deal appeared first on USNewsRank.