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No. of Recommendations: 3
there are several reasons for making an acquisition
1. the company is making so much money that don't know what to do with it , their main business can't absorb x\cash flow
2. The CEO wants a bigger company so that he can argue that he needs bigger salary and more bonuses
3. The CEO wants to head a bigger company so he can elevate his status at his golf club
4.The CEO as been led to believe that some new trend/fad will lead to riches. He does not understand it but does not want to be the one left out
5 The business is cyclical so Diversification usually leading to several cyclical business
6. management was inept or conned as the case was for Middleby and the Viking acquisition.

more rational reasons as described here
And here

Wen evaluating the TWLO acquisition I have to assume that management in this case knows what it is doing and the acquisition adds strength and synergies . I am willing to go with Twillo on this one because they have been doing a great job. In fact I added a bit of TWLO today.
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