Cloud-based software company, Salesforce, completed the acquisition of Slack for $27.7 billion. The former had announced its intent to combine the Microsoft Teams rival and enterprise chat platform with its Customer 360 platform, back in December 2020.
With the Covid pandemic forcing businesses to equip employees to work remotely, the need for online collaboration reached a crescendo during the past year. Slack is an enterprise communication platform. Salesforce offers CRM (customer relationship management) services, enterprise applications focused on customer service, marketing automation, analytics, advisory services and more.
The messaging service is expected to make it easier for customer service, sales, and marketing teams to collaborate. So it makes sense to put the two together. The $27.7 billion price for Slack means it is Salesforce’s biggest acquisition to date.
Naturally, industry analysts are waiting to see if this pays off. The terms of the buyout state that for each share, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock. This represents an enterprise value of roughly $27.7 billion, according to the closing price of Salesforce’s common stock on November 30, 2020.
Speaking about the acquisition, Marc Benioff, Chair and CEO of Salesforce, said, “Together we’ll define the future of enterprise software, creating the digital HQ that enables every organization to deliver customer and employee success from anywhere.”
Slack will serve as the new interface for Salesforce Customer 360. The platform’s open API allows for convenient integration with over 2,400 apps that companies use for enterprise-level collaboration and communication. The idea is to enable employees to work seamlessly with each other from anywhere in the world.