Reports concerning Twilio’s potential acquisition of Segment surfaced just under a month ago. The $3.2 billion agreement was formally revealed three weeks ago, and today, the communications API provider confirmed the completion of the acquisition, a remarkably swift timeline for a deal of this magnitude.

Although definitive confirmation is unavailable, the rapid finalization of the transaction may indicate that negotiations were further along than initially perceived. It’s possible that when initial reports of the acquisition appeared, a final agreement was already in place. Furthermore, the pre-existing relationship between Twilio CEO Jeff Lawson and Segment CEO Peter Reinhardt likely contributed to an expedited process.

Nevertheless, the two organizations represent a strong strategic alignment. Both operate within the API economy, offering a suite of instruments designed to simplify the integration of specific functionalities into applications. Twilio specializes in communications APIs, while Segment concentrates on customer data management.

Integrating these complementary toolsets, alongside Twilio’s 2018 acquisition of SendGrid, presents the opportunity to develop comprehensive applications for customer interaction across all touchpoints. This includes core communications capabilities like video, SMS, and audio through Twilio, enriched customer data from Segment, and personalized email and advertising campaigns powered by SendGrid.

As businesses prioritize digital engagement, particularly in the current pandemic environment, Twilio’s Lawson posits that the primary obstacle to effective engagement is fragmented data – a challenge Segment has been actively addressing.

“The integration of Segment into Twilio’s Customer Engagement Platform empowers businesses to both comprehend and connect with their customers digitally – this synergy is essential for crafting exceptional digital experiences,” Lawson stated.

In a recent analysis of the deal’s rationale, Brent Leary, founder and principal analyst at CRM Essentials, observed: “This acquisition positions Twilio to influence the data-insight-interaction-experience transformation by streamlining the developer experience on their platform,” Leary noted.

Now that the acquisition is finalized, Segment will operate as a division within Twilio. Reinhardt will remain as CEO of Segment and will report directly to Lawson.