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Credit: Stephen Phillips

Salesforce buys Slack for $US27.7 billion

Global CRM leader Salesforce has acquired Slack Technologies, a workplace messaging platform, for $US27.7 billion.

The transaction is anticipated to close in the second quarter of Saleforce’s fiscal year 2022, subject to approval by Slack stockholders.

This is Saleforce’s largest acquisition in its 21-year history.

Prior to Slack, Saleforce’s largest acquisition was data analytics specialist Tableau Software for $US15.7 billion in August 2019. Salesforce previously bid to buy LinkedIn in 2016 however was beat by Microsoft, buying the networking service for over $US26 billion.

“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.”

Slack is a workplace communication hub that integrates with over 2,400 apps to help people collaborate and communicate.

It was founded in 2009 and has reportedly rebuffed acquisitions from Google, Microsoft and Amazon.

Slack will be integrated into every Salesforce Cloud and will be the new interface for Salesforce Customer 360.

“Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive,” said Stewart Butterfield, Slack CEO and Co-Founder.

“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.”

Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share.

Salesforce expects to fund the cash portion of the transaction with new debt from Citigroup, Bank of America and JP Morgan, and cash on Salesforce’s balance sheet.

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Ann Wen

Ann Wen

Ann is a journalist at Dynamic Business.

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