Twilio Makes a Smart Move For Sendgrid

Twilio Inc. (NYSE: TWLO) and SendGrid announced on October 15 that they have entered into a definitive agreement under which Twilio will purchase SendGrid in an all-stock transaction worth approximately $2 billion. The exchange ratio for this deal is 0.485 shares of Twilio Class A common stock per share of SendGrid common stock. This values each share at approximately $36.92 based on the companies’ closing prices on October 15. The deal is expected to be finalized in the first half of 2019. Jeff Lawson, CEO and co-founder at Twilio, stated, “The two companies share the same vision, the same model, and the same values. We believe this is a once-in-a-lifetime opportunity to bring together the two leading developer-focused communications platforms to create the unquestioned platform of choice for all companies looking to transform their customer engagement.” Morgan Stanley is acting as financial adviser to SendGrid with Cooley LLP and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisers. Goldman Sachs is acting as financial adviser to Twilio with Goodwin Procter LLP providing legal counsel.