Salesforce.com Inc. has agreed to buy workplace messaging app Slack Technologies Inc. for $27.7 billion, according to Reuters. Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, or $45.5 per share based on Salesforce’s closing price on Tuesday. The offer represents a premium of 54% since the first report about deal talks emerged last week.
- The acquisition of Slack will enable Salesforce to provide an integrated platform for businesses to connect their employees, customers, and partners with each other.
- Slack will benefit from the deal through an increased ability to penetrate non-tech companies.
- The deal is part of Salesforce bets on an extended run for remote working and sharpens rivalry with Microsoft.
- Analysts expect Salesforce shares to range in the short-term given the large transaction even as the company reported third-quarter revenue of $5.42 billion, above expected $5.25.
- The deal comes when Slack is struggling to fully capitalize on the switch to remote working during the COVID-19 pandemic.
- Slack introduced a real-time messaging system but has faced Microsoft’s competition, which promoted its similar Teams product with integrated video and voice calling.
Salesforce stock and Slack Technologies stocks are currently declining. CRM: NYSE is down 4.57% on premarket, WORK: NYSE is down 0.89% on premarket.
