Twilio just spent $2 billion on a company that helps send mass emails

  • The acquisition allows software developers to "manage all of their important communication channels — voice, messaging, video, and now email as well," Twilio said in a statement.
  • Shares of Twilio fell more than 4 percent in extended trading after the announcement. SendGrid jumped about 15 percent.
  • The all-stock transaction is expected to close in the first half of 2019.
Jeff Lawson
Abigail Stevenson | CNBC
Jeff Lawson

Twilio just spent $2 billion to buy SendGrid, a company that helps send mass emails, the company said Monday.

Shares of Twilio fell more than 4 percent in extended trading after the announcement. SendGrid jumped about 15 percent.

SendGrid offers companies a cloud-based service for sending emails at a large scale. The acquisition allows software developers to "manage all of their important communication channels — voice, messaging, video, and now email as well," Twilio said in a statement.

Twilio offers software for secure messaging platforms and competes with companies such as Avaya and Cisco.

"Increasingly, our customers are asking us to solve all of their strategic communications challenges — regardless of channel. 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," Twilio CEO Jeff Lawson said in a statement.

Twilio stock has far outpaced the overall market this year, up more than 220 percent in 2018. As of Monday's close, shares were within 14 percent of 52-weeks highs.

The all-stock transaction is expected to close in the first half of 2019.

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