SendGrid Inc. SEND, -0.23% stock jumped 17% in the extended session Monday after Twilio Inc. TWLO, +1.51% said it has agreed to buy the Denver-based email platform company for $2 billion in an all-stock deal. Under the terms of their agreement, a Twilio subsidiary will be merged with and into SendGrid, with SendGrid surviving as a wholly owned subsidiary of San Francisco-based Twilio, the companies said. At the closing, expected for the first half of 2019, each share of SendGrid stock will be converted into the right to receive 0.485 shares of Twilio stock, representing a per-share price for SendGrid stock of $36.92 based on Twilio’s closing price on Monday. Both boards will have to approve the deal. The companies will report third-quarter results on Nov. 6, but they said Monday they both have exceeded their guidances provided earlier in the year. Guidance for a combined company will be provided after the deal is closed, the companies said. Shares of Twilio fell 4% after ending the regular trading day up 1.5%; SendGrid shares ended 0.2% lower.
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