(Reuters) – Cloud communications company Twilio Inc is in talks to invest as much as $ 750 million in Syniverse Technologies LLC, the Wall Street Journal reported Sunday.
The investment will be announced Monday, which could be followed by a merger between telecommunications services company Syniverse and a special acquisition company to make it public, the report said, citing people familiar with the matter.
The deal values Syniverse at approximately $ 2 billion to $ 3 billion including debt.
There is no guarantee that Syniverse, backed by private equity firm Carlyle Group Inc, will go public, either through a SPAC deal or an IPO, the Journal added.
For Syniverse, the Twilio deal entails a commercial agreement that would steer a significant portion of things its way, the paper said. Syniverse can also use the proceeds from a SPAC deal to make acquisitions, he said.
Both Twilio and Syniverse did not immediately respond to a request from Reuters for comment.
Reporting by Maria Ponnezhath and Juby Babu in Bengaluru; Editing by Daniel Wallis & Shri Navaratnam