Last week there were rumblings that Salesforce was in advanced talks to acquire Slack and on Tuesday those rumblings were confirmed.
This is a rather big deal monetarily speaking with the transaction valued at $27.7 billion. In a press release, Salesforce said that Slack shareholders would receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share. This is based on closing price of Salesforce common stock on 30th November.
“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,” chair and chief executive officer at Salesforce, Marc Benioff, said in a statement.
This is also not some simple acquisition as Salesforce is going to be integrating Slack into its product stack.
“Slack will be deeply integrated into every Salesforce Cloud. As the new interface for Salesforce Customer 360, Slack will transform how people communicate, collaborate and take action on customer information across Salesforce as well as information from all of their other business apps and systems to be more productive, make smarter, faster decisions and create connected customer experiences,” the firm revealed.
With Salesforce covering CRM and Slack covering comms, this combination is likely going to be incredibly successful. Further to that, Salesforce and Slack appear to be intent on keeping the ecosystem open. This is unsurprising as integration with other apps is what makes Slack so attractive to professionals.
The transaction is expected to be finalised in the second quarter of 2022 subject to regulatory approval and other customary closing conditions.
“As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going,” said Slack co-founder and CEO, Stuart Butterfield.