Salesforce announced that it has entered into a definitive agreement under which the cloud-computing leader will acquire Slack. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020.
According to a statement issued by Salesforce, by combining Slack with Salesforce Customer 360 will be transformative for customers and the industry. The combination will create the operating system for the new way to work, uniquely enabling companies to grow and succeed in the all-digital world read the statement.
“Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” said Marc Benioff, Chair and CEO, Salesforce. “This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.” Benioff and his wife who with his wife, Lynne, shelled out $190 million to acquire Time magazine in 2018
It is the biggest acquisition in 21-year-old Salesforce’s history. The San Francisco-based company’s stock dipped 3.6 percent in extended trading. Slack shares, which have surged in recent days on reports that the merger was in the works, were little changed.
The deal, which is expected to close in 2022, comes as Slack has struggled to fully capitalize on the switch to remote working during the COVID-19 pandemic in the face of fierce competition from Microsoft Corp’s Teams and other workplace apps.