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Salesforce to acquire workplace messaging app Slack for $27.7 billion

Cloud computing giant Salesforce on Tuesday announced that it is acquiring workplace chat app Slack.

twitter-logoAnkita Chakravarti | December 2, 2020 | Updated 10:34 IST

Highlights

  • Salesforce on Tuesday announced that it is acquiring workplace chat app Slack.
  • he acquisition of Slack is being haled as Salesforce’s biggest purchase in the 21st century.
  • The company is spending  $27.7 billion to buy Slack, as per the announcement made by the companies. 

Cloud computing giant Salesforce on Tuesday announced that it is acquiring workplace chat app Slack. The acquisition of Slack is being haled as Salesforce's biggest purchase in the 21st century. The company is spending $27.7 billion to buy Slack, as per the announcement made by the companies.

"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," the report by Slack and Salesforce read.

Salesforce CEO Marc Benioff has said that together the two companies will shape the future of enterprise software. "Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it, 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," Marc said.

While Slack CEO Stewart Butterfield believes that the acquisition of Slack by Salesforce is the most strategic combination in the history of software.

"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.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 Stewart Butterfield, Slack CEO and Co-Founder.

Slack was founded as a gaming company in 2009 in Vancouver, British Columbia, Canada. However, Slack soon emerged as the widely used workplace messaging app. It continued to face threats not only from Microsoft but also from Facebook, Google, and other companies that came up with their various messaging apps.

Salesforce and Slack aim to give companies a single source of truth for their business and a unified platform for connecting employees, customers, and partners with each other and the apps they use every day, all within their existing workflows.

"Salesforce is the #1 CRM that enables companies to sell, service, market, and conduct commerce, from anywhere. Slack brings people, data and tools together so teams can collaborate and get work done, from anywhere. Slack Connect extends the benefits of Slack to enable communication and collaboration between a company's employees and all its external partners, from vendors to customers. 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 statement issued by the companies read.

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