NEW YORK, NY / ACCESSWIRE / October 17, 2018 / Twilio saw a modest drop on Tuesday despite announcing its largest acquisition in its history. The company plans to acquire SendGrid for around $2 billion. Shares of Fuwei Films saw big gains after revealing it received a higher amount of orders for the fourth quarter from a major customer.
RDI Initiates Coverage on:
Fuwei Films (Holdings) Co., Ltd.
Twilio Inc. shares were down a modest 0.28% on Tuesday on trading volume that was a lot higher than usual. The stock traded around 21.9 million shares compared to an average of just under 2.5 million shares. The company has announced that it plans to acquire SendGrid, an API-centric email platform, for about $2 billion in an all-stock transaction. The acquisition, which is expected to close in the first half of next year, would be Twilio's largest so far. Co-founder and CEO Jeff Lawson said, "The two companies share the same vision, the same model, and the same values. We believe this is a once-in-a-lifetime opportunity to bring together the two leading developer-focused communications platforms to create the unquestioned platform of choice for all companies looking to transform their customer engagement.” SendGrid will become a wholly owned subsidiary of Twilio and its common stock will be converted into Twilio stock.
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Fuwei Films (Holdings) Co., Ltd. shares closed up 23.70% on nearly 4.2 million shares traded yesterday but gave some of those gains back in after-hours trading. The stock saw a decline of 5.61% after-hours. Volume was tremendous compared to the stock's average trading volume of just about 30,000 shares. The big moves came after the manufacturer and distributor of high-quality BOPET plastic films in China, announced that it has received higher orders for the fourth quarter of 2018 from its major customer, Eternal Electronic Material (Guangzhou) Co., Ltd. ("Eternal Electronic"). Based on the expanded demand, Fuwei Films expects that fourth quarter sales to Eternal Electronic will be approximately 30% higher as compared to the same period a year ago. Chairman Mr. Zengyong Wang commented, "The order increase from Eternal Electronic demonstrates that the product quality of our PCB-purpose polyester film is recognized by our major customers. Meanwhile, we believe that the order growth also helps improve the Company's financial performance. Going forward, we plan to continue developing our portfolio of new and high-quality film products and maintain excellent customer service for competitive positioning."
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