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One of the most-awaited tech deals of the year is finally through.
Salesforce.com (NYSE:CRM) has acquired communications platform Slack Technologies, Inc. (NYSE:WORK) for US$ 27.7 billion, making it the eighth-largest M&A deal in tech industry.
Salesforce.com, which operates in the CRM space, has signed a definitive agreement with Slack. As per the terms, the shareholders of Slack would get US$26.79 in cash along with 0.0776 shares of Salesforce common stock for each Slack share. The enterprise value of ~US$27.7 billion is based on the price of the common stock of Salesforce by the end of the day’s trade on 30 November 2020.
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Salesforce.com helps businesses sell, service, market, and conduct commerce from any location. This merger will allow the US cloud-based software company waddle deeper into enterprise software ecosystem and facilitate remote work conditions from anywhere across world.
Slack will be integrated with Salesforce Customer 360 to allow businesses to operate on an unified platform that helps employees, customers and partners connect with each other. It will also create an extensive open ecosystem of apps and workflows for organisations.
Image Source: Shutterstock
Slack at Salesforce:
After the acquisition, Slack will become the new public interface of Salesforce Customer 360.
In other words, Salesforce clients and users will be able communicate and collaborate both internally (employees inside the organisation) and externally (vendors and customers) with the help of Slack Connect.
Once the deal is completed, and Slack becomes an operating unit of Salesforce, Stewart Butterfield, the current CEO, will continue to lead the operations.
This acquisition will also help Slack expand its enterprise footprint through Salesforce’s CRM platform. This would not be limited to the Salesforce customer but also cover any business undergoing digital transformation.
About the proposed transaction
The board of directors of Slack and Salesforce have agreed to the transaction. The Slack board has recommended the shareholders to approve the transaction and adopt the merger agreement. The transaction is expected to be over by Q2 FY2022, depending upon approval from the shareholders of Slack, regulatory authorities and other customary closing criteria.
