Twilio’s $850 Million Acquisition of Zipwhip

Fenwick & West LLP advised Twilio on the deal.

Twilio (NYSE:TWLO), the leading cloud communications platform, announced that it has entered into a definitive agreement to acquire Zipwhip for approximately $850 million in an equal blend of cash and stock. The transaction is expected to close by the end of 2021. 

Twilio will acquire Zipwhip for approximately $850 million in an equal blend of cash and stock. Zipwhip will become part of Twilio’s Messaging Business Unit upon close. The boards of directors of Twilio and Zipwhip have each approved the transaction.

The transaction is expected to be modestly accretive to Twilio’s gross margin and revenue. Twilio is reiterating its Q2 2021 revenue guidance of $591 million to $601 million, which does not include any impact from this transaction, new application-to-person fees, nor revenue from the previously announced ValueFirst acquisition.

The transaction is expected to close by the end of 2021, subject to the satisfaction of customary closing conditions. Morgan Stanley & Co. LLC served as exclusive financial advisor and Cooley LLP served as legal counsel to Zipwhip. Fenwick & West LLP served as legal counsel to Twilio. 

The Fenwick transaction team included corporate partners Ken Myers (Picture) and Bomi Lee and associates Allix Hellman, Victoria Wong, Cindy Chang and Justin Kelley; technology transactions partners Jonathan Millard and Joseph Schenck, counsel Chris Joslyn, and associates Julia Arruda, Russell Wong and Brandon Cheung; executive compensation and employee benefits partners Gerald Audant and Matthew Cantor and associates Corinne Nhaissi and Jonathan Stephenson; employment practices counsel Matthew Damm; privacy and cybersecurity partners Jim Koenig and Brent Hoard and associate Ana Razmazma; intellectual property partner Stuart Meyer and associate Emily Bullis; trademark associate Priyank Patel; antitrust & trade regulation partner Mark Ostrau; and tax partner William Skinner and associate Michael Knobler.

Involved fees earner: Julia Arruda – Fenwick & West LLP; Gerald Audant – Fenwick & West LLP; Emily Bullis – Fenwick & West LLP; Matthew Cantor – Fenwick & West LLP; Cindy Chang – Fenwick & West LLP; Brandon Cheung – Fenwick & West LLP; Matthew Damm – Fenwick & West LLP; Brent Hoard – Fenwick & West LLP; Christopher Joslyn – Fenwick & West LLP; Justin Kelley – Fenwick & West LLP; Michael Knobler – Fenwick & West LLP; James Koenig – Fenwick & West LLP; Bomi Lee – Fenwick & West LLP; Stuart Meyer – Fenwick & West LLP; Jonathan Millard – Fenwick & West LLP; Ken Myers – Fenwick & West LLP; Corinne Nhaissi – Fenwick & West LLP; Mark Ostrau – Fenwick & West LLP; Priyank Patel – Fenwick & West LLP; Ana Razmazma – Fenwick & West LLP; Joseph Schenck – Fenwick & West LLP; William Skinner – Fenwick & West LLP; Jonathan Stephenson – Fenwick & West LLP; Victoria Wong – Fenwick & West LLP; Russell Wong – Fenwick & West LLP;

Law Firms: Fenwick & West LLP;

Clients: Twilio, Inc.;

Martina Bellini

Author: Martina Bellini