Twilio has entered into a definitive agreement to acquire data platform company Segment for approximately $3.2 billion. The transaction is expected to close by the end of this year. The boards of directors of Twilio and Segment have each approved the transaction. Subject to customary closing conditions, the transaction is expected to close by the end of this year.

In a statement, Jeff Lawson, co-founder and CEO of Twilio, talked about the transaction. “Combined with Twilio’s Customer Engagement Platform, we can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales.”

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” said Peter Reinhardt, Segment’s co-founder and CEO.

The transaction creates a combined total addressable market of $79 billion, according to Twilio.

Morgan Stanley is serving as exclusive financial advisor to Twilio and Cooley as legal advisor. Qatalyst Partners is serving as exclusive financial advisor to Segment and Goodwin Procter legal advisor.

[Image courtesy: Segment]