Twilio closes $750M acquisition of minority stake in Carlyle-backed Syniverse

Customer engagement platform provider Twilio Inc. closed its acquisition of an undisclosed minority stake in Carlyle Group Inc.-backed Syniverse Technologies LLC for $750 million.

The transaction is part of an expanded strategic and commercial tie-up between the companies, Syniverse said May 16. Twilio now has a significant minority ownership in Syniverse following the investment, with Carlyle retaining a majority stake.

Communications technology provider Syniverse will use the deal's proceeds to boost investment in innovation, product quality, customer service, and expansion efforts.

Syniverse also said it raised new term loan debt of $1.025 billion and new preferred equity of $340 million, which the company will use mainly to reduce debt.

Moelis & Co. LLC is Syniverse and Carlyle's financial adviser on the transaction, with Debevoise & Plimpton LLP as legal counsel. Barclays Bank, Goldman Sachs Bank, BNP Paribas Securities, Societe Generale, BofA Securities Inc., Credit Suisse Loan Funding LLC, Deutsche Bank Securities Inc. and Mizuho Bank Ltd. are the joint bookrunners on the new term loan financings, while affiliates of Oak Hill Advisors LP, Brigade Capital Management LP and other parties provided preferred equity financing.

Twilio tapped Centerview Partners LLC as financial adviser, with Kirkland & Ellis LLP and DLA Piper LLP as legal counsels.