February 21, 2024
Activist investor Anson Funds has constructed a stake in Twilio and despatched a letter to the enterprise software program firm’s board pushing for the sale of all the enterprise, an individual acquainted with the matter advised CNBC.

Twilio shares rose round 2% on the information in Tuesday morning buying and selling.

Anson didn’t maintain any Twilio inventory for the interval ending Sept. 30, in accordance with securities filings, however has since constructed a stake valued at round $50 million, the individual acquainted stated. The letter to the board urges Twilio to both promote itself or at a minimal, divest its information and functions enterprise, the individual acquainted stated.

The expansion of the stake coincided with Anson’s hiring of Sagar Gupta from Legion Companions. Gupta led Legion’s activist engagements with Twilio and Nutanix, a cloud computing agency.

The information was first reported by The Data.

The continued activist consideration caps off a difficult 12 months for Twilio, which makes software program that helps companies have interaction with their clients. The corporate’s inventory is up round 28% year-to-date however stays effectively off its 2021 highs. In February, the corporate lower round 1,500 workers, or 17% of its workforce citing a necessity for heightened effectivity. These layoffs adopted an identical headcount discount in September 2022.

The corporate additionally carried out a reorganization in February, creating two new enterprise items: Information & Functions and Communications. If Anson is unable to push for a full sale to a strategic purchaser, the activist investor has urged the board to divest the previous enterprise unit.

Tech acquisitions, whereas muted in comparison with pandemic ranges, have seen some vital performs in 2023. In March, Silver Lake and CPP Investments introduced a deal to take survey software program firm Qualtrics non-public in a $12.5 billion deal. IBM acquired software program maker Apptio in a $4.6 billion money deal introduced in June. Cisco stated it might take cybersecurity agency Splunk non-public in a $28 billion money deal in September.

CEO and co-founder Jeff Lawson helped begin Twilio in 2008 and guided the corporate by its 2016 IPO. Twilio has a market cap of round $11.6 billion.

A spokesperson for Twilio was not instantly out there for remark.

It is a growing story. Please examine again for updates.