Twilio (TWLO) was rising in premarket Monday as the cloud communications platform announced plans to invest as much as $750 million in Syniverse Technologies.
The investment comes ahead of a potential public listing for the private-equity-owned messaging company. While Twilio will become a significant minority owner of the company, Carlyle Group (CG) will remain its majority stake holder.
"We have long been a Syniverse customer and are pleased to expand our relationship to provide reliable, scalable and rich two-way messaging for businesses and their customers," said Twilio Chief Product Officer Chee Chew.
The deal values Syniverse at between $2 billion and $3 billion including debt, according to The Wall Street Journal, which also reported that there was no guarantee the company will pull off a listing, either through a special purpose acquisition company or a traditional initial public offering.
Syniverse said it will benefit from Twilio's "breadth of experience" and be even better positioned to serve its customers through this partnership.
Syniverse and Twilio will enter into an agreement in which Syniverse will process, route and deliver application-to-person messages originating and/or terminating between Twilio's customers and network operators.
"The partnership will provide Syniverse access to Twilio’s extensive enterprise and API services expertise, creating opportunities to continue to build on Syniverse’s highly innovative product portfolio that helps mobile network operators and enterprises make communications better for their customers," said Syniverse executive chairman James Attwood.
Twilio shares were rising 1.8% in premarket trading Monday on the news. They closed Friday's session up more than 4%.