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)
