Cloud computing giant Salesforce (NYSE:CRM) has agreed to buy Slack Technologies for $27.7 billion U.S. in cash and stock.
Slack gives Salesforce a popular workplace communications platform in one of the biggest technology deals of 2020. Slack is a platform aimed at teams of co-workers to converse, work on projects together and share links, photographs and more in real time. The transaction, Salesforce’s largest-ever acquisition, is expected to close by the end of July 2021.
Slack investors will receive $26.78 U.S. for each company share, as well as 0.0776 share of Salesforce -- representing a 55% premium to Slack’s share price on November 24, the day before media reports surfaced about deal talks between the two companies.
Salesforce Chief Executive Officer Marc Benioff has orchestrated more than 60 acquisitions in 21 years, taking his company from dot-com era upstart to a giant of cloud computing. The Slack deal would give Salesforce, the leader in customer relationship management, another angle of attack against Microsoft, which has itself become a major force in internet-based computing.
Microsoft’s Teams product, which offers a workplace chatroom, automation tools and videoconference hosting, is a top rival to Slack.
Stewart Butterfield, Slack’s co-founder and CEO, will continue to run the business as a Salesforce unit when the deal is completed, the companies said.
Salesforce’s shares declined about 4% in extended trading Tuesday after closing at $241.35. The stock has jumped 48% this year. Slack’s shares were little changed after closing at $43.84 U.S. The stock has almost doubled in 2020, with about half of that gain coming since the acquisition talks were first reported.
