A glimpse at the deal’s historic analogs and what we can tell from the numbers

The Twilio-Segment acquisition was the most significant story of the weekend, and in our present IPO lull, it is the most gone over deal of the minute. It hasn’t been a surprise to see folks working to figure out if the $3.2 billion price tag Twilio expects to

pay for Section is inexpensive, reasonable or costly. The Exchange checks out start-ups, markets and cash. Read it every early morning on Additional Crunch, or get The Exchange newsletter every Saturday. We had the same concern. The all-stock deal is another big offer from Twilio, which formerly scooped up SendGrid. Some expected Twilio to be gotten by a bigger company after it went public

, I have actually been informed. Instead, Twilio has actually become the acquiring entity, enhancing its size and contributing to its total addressable market(TAM)through deal-making. However a smart company can still pay too much while performing a typically smart method. Does the Sector offer look cheap, or costly? While we don’t have all the information we ‘d like, a few useful VCs dropped tips about the size of Section in my DMs. Our hunt starts with Twilio’s own release on the matter. From there, we’ll bring in some historic data from the offer that Twilio compares the Segment deal to, compare the resulting multiples to today’s market norms and close with a conversation of the acquiring business’s rising share price. The synthesis of all the aspects will give us a response. And we’ll have some enjoyable at the same time. The offer A fast refresher on the deal: Twilio will spend$3.2 billion in shares of itself to purchase Section. Per the business, the deal deserves about 6%of the combined entity. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.