The deal, which had not been finalized as of Friday afternoon, was expected to be at least partially based on Twilio stock, the report added, citing two sources it did not name.
San Francisco-based Segment has recently been open to acquisition offers, according to the report.
Twilio declined to comment to Reuters. Segment was not immediately available for comment outside regular business hours.
Segment raised $175 million in a Series D funding round in April 2019. The startup said in September that it worked with more than 20,000 businesses including Intuit, FOX and Levi’s, employing more than 550 people.
“Twilio is a beneficiary of pandemic-catalyzed digital transformation acceleration,” brokerage JP Morgan said in a note this month.
Last week, Twilio estimated third-quarter sales above its previous forecast, as the switch to remote working and learning boosted demand for cloud services.
(Reporting by Juby Babu and Kanishka Singh; Editing by William Mallard)