Salesforce is acquiring Slack, a workplace app for $27.7 billion
Cloud-based #1 CRM Salesforce was rumoured to be in the acquisition talks of a workplace messaging app Slack to expand its offerings to businesses and people familiar with it. On December 1, 2020, Salesforce confirmed that it is buying Slack Technologies Inc in a $27.7 billion deal.
How will this acquisition benefit Salesforce?
This acquisition will enable Salesforce to leverage Slack’s solutions and deliver a centralized platform for businesses. This would allow them to connect their customers, partners and employees, and their apps.
“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,” Marc Benioff, CEO of Salesforce, said in a statement.
Salesforce’s BIG bid
This is Salesforce’s biggest acquisition by far since its 21-year long history! Salesforce’s bid came against the fierce competition from Microsoft Corp’s Teams and other workplace apps as Slack was struggling to switch to remote working during the COVID-19 pandemic.
On Tuesday, Slack shares ended trading at $29.57. It is below the $42 high that they had reached on their first day of trading last year. Seeing it as a potential acquisition to extend its enterprise offerings, Salesforce bid on it.
“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 Slack CEO Stewart Butterfield.
After the Wall Street Journal first reported about the acquisition deal, Slack Technologies’ shares boosted by 24% to $36.58, giving the company a market capitalization of $21 billion, while Salesforce shares fell by 2.7%.
Salesforce’s earlier acquisitions
Previously, Salesforce’s big acquisitions were Tableau for $15.7 billion in 2016, MuleSoft for $6.5 billion in 2018, Demandware for $2.8 billion in 2016, ExactTarget for $2.5 billion in 2013, ClickSoftware for $1.35 billion in 2019, and Vlocity for $1.33 billion earlier this year. And now it’s Slack!
This acquisition is also giving Salesforce an edge over its longtime industry competitor, Microsoft.
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