Twilio announced today it plans to acquire SendGrid, an email API platform, in an all-stock transaction valued at around $2 billion. The boards of directors of Twilio and SendGrid have each approved the transaction, which is expected to close in the first half of 2019.
SendGrid, a Denver-based company founded in 2009, offers a platform for sending emails, such as purchase confirmations, password reset instructions, or emails about an upcoming sale. Developers and marketers use SendGrid to craft, segment, test and deliver the emails. The company has more than 74,000 paying customers, including Spotify, Uber and Airbnb, which send more than 45 billion emails via the platform every month.
The acquisition adds email services to the Twilio cloud communications platform, which already includes voice, messaging and video.
"Increasingly, our customers are asking us to solve all of their strategic communications challenges - regardless of channel," Twilio co-founder and CEO Jeff Lawson said in a statement. "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."