Views Article – Sharenet Wealth

News, North America

Twilio to invest up to $750 mln in telecom company Syniverse

(Adds details of the deal, background)

March 1 (Reuters) – Cloud-communications platform Twilio Inc said on Monday it would invest up to $750 million in telecommunications services company Syniverse Technologies LLC.

Shares of Twilio were up nearly 2% at $399 in premarket trade.

Twilio also said that private-equity firm Carlyle Group Inc , which is currently the major owner of Syniverse, will maintain its majority interest in the telecom services company.

The companies will pursue additional potential financing transactions in the form of public market transactions or additional equity investment, Twilio said.

The investment deal, expected to close before the end of this year, comes after Twilio last month posted a 65% jump in fourth-quarter revenue, beating Wall Street estimates.

Cloud companies have seen a surge in demand this year as more businesses use their services to meet the demands of the switch to work from home due to the COVID-19 pandemic. (Reporting by Akanksha Rana in Bengaluru; Editing by Vinay Dwivedi)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.