Twilio Inc. (NYSE: TWLO) is shutting down the software services from the Seattle-based startup it acquired last year.
The San Francisco-based cloud communications company updated the support page for Zipwhip on Oct. 17, saying Nov. 30, 2023, would be the last day to use the business texting service. They will permanently shut down the service the next day.
Geekwire first reported the story Tuesday.
Twilio bought Zipwhip, which allows businesses to text customers from both their existing phone numbers and computers, for $850 million in May 2021. The deal was a blend of cash and stock and closed in the second fiscal quarter of 2022.
A Twilio spokesperson said in an email that the move was made to "streamline communications solutions" and though it doesn't have its own replacement product for consumers, it provided a guide to customers in need of a similar service.
Twilio said Zipwhip employees have been folded into the company's messaging team, and those in the Pacific Northwest region are based out of Twilio's Seattle hub, the former Zipwhip office. Before the merger, Zipwhip had almost 300 Seattle-area employees, according to Business Journal research.
Zipwhip made a big deal for office space in 2019, by signing a lease for 72,000 square feet of office space at Elliott Bay Office Park. The company had previously been at Home Place Center across from T-Mobile Park on First Avenue South.
When Twilio first brought Zipwhip in, the Seattle company accounted for 3.2% of Twilio's overall revenue for the third fiscal quarter of 2021, according to regulatory filings. Zipwhip's contribution peaked the next quarter at 3.8% and last quarter accounted for 3.6% of $943.4 million in revenue.
Twilio is reporting its earnings for the third fiscal quarter of 2022 on Thursday.
