Cloud computing giant Salesforce has today announced that it has acquired workplace communication platform Slack for a sum of $27.7 billion in its biggest deal yet. Rumors of Slack’s deal with Salesforce began making rounds back in last week, and today, the two companies formally announced it via a press release. Following the deal, Slack will be deeply integrated into Salesforce Cloud and will act as the new interface for Salesforce Customer 360 to streamline communication and collaboration between employees, customers, as well as partners. Despite the acquisition, current slack CEO Stewart Butterfield will continue to lead the company he helped found.
The transaction is expected to conclude in the second quarter of FY 2022 subject to regulatory approvals and a nod by shareholders. Once the transaction closes, Slack will become an operating unit of Salesforce, which claims that the merger will allow it to offer a unified platform for connecting with employees and partners to its customers, taking advantage of the app integrations in Slack that form a crucial part of the workflow.
“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,” Salesforce CEO Marc Benioff was quoted as saying. “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,” Slack CEO and Co-Founder, Stewart Butterfield, said regarding the deal.
Following the acquisition, Slack stockholders will receive the equivalent of $45.86 per share, including $26.79 in cash, reports Axios. “Together, Salesforce and Slack will create the most extensive open ecosystem of apps and workflows for business and empower millions of developers to build the next generation of apps, with clicks not code”, the press release added.
The deal will also play a major role in Slack’s lopsided rivalry with Microsoft, which also offers its own collaboration platform called Teams as part of a larger bundle to its enterprise customers and has grown at a rapid pace in the pandemic era while remote workflow quickly became the norm.