What's behind the blockbuster deal? Twilio CEO Jeff Lawson tells TheStreet that the deal fleshes out Twilio's existing portfolio of products -- which includes APIs for voice, chat, videoconferencing and more -- with an email product. Email is still a vital channel for businesses to talk to customers, and Lawson sees the acquisition as a way to make sure that Twilio has products across every single channel that a business would potentially use to reach customers.
Twilio's stock has been on a tear in 2018, up more than 200% since the beginning of this year, and Lawson has an ambitious plan to help drive a "communications Renaissance" for businesses, making it easier than ever to compete on great customer service. At its annual conference this week, Twilio will also roll out a new payments feature that allows businesses to security accept payment details during a call.
The multi-billion deal also merges two publicly traded companies. When the deal closes in early 2019, the acquisition will convert SendGrid to Twilio shares at a rate of 0.485 per share.
SendGrid is among the 5 Stocks to Buy for the Next Leg of the Nasdaq Rally written by Real Money's Timothy Collins