Salesforce to buy workplace app slack in $ 27.7 billion deal

Salesforce to buy workplace app slack in $ 27.7 billion deal

Slack changed workplace communications by focusing on live messaging, which can be broken down into conversations with groups gathered on the fly.

(Subscribe to our cache newsletter today for a quick snapshot of the top 5 tech stories. Click here to subscribe to subs subs.)Salesforce.com has agreed to buy Slack Technologies Inc., a workplace messaging app, for $ 27.7 billion, the largest amount ever earned by cloud computing pioneers as it seeks to expand its reach into remote jobs and sharpen its hostility to Microsoft.

Deal enables the sales force to provide businesses with a unified platform to connect their employees, customers and partners and to strengthen the enterprise portfolio of the applications they use.

The contract for Slack comes as COVID-19 struggles to make full use of the switch to remote operation during the pandemic.

Slack changed workplace communications by focusing on live messaging, which can be broken down into conversations with groups that converge on the fly, a platform that is faster than email.

The messaging style that helped create Slack has become a highly competitive space, aggressively promoting the product of teams large and old rival Microsoft Corporation with integrated video and voice calling.

Microsoft combines teams with its many office software packages, which is an added attraction for companies looking to save on the costs of the outbreak.

“This agreement allows the sales force to delve deeper into cooperation and business communication, which is good for Slack, especially to grow their penetration into non-tech companies,” said Rishi Jaluria, DA Davidson Analyst.

Slack shareholders will receive $ 26.79 per slack per share, 0.0776 shares of Salesforce Common Stock or $ 45.5 per share based on Tuesday’s salesforce closing price.

The offer represents a 54% premium since the deal was released last week.

Shares of Slack fell slightly to $ 43.73 in extended trading on Tuesday. Shares of Sailforce fell more than 4 percent.

“(Sailforce) shares will be limited to large deals in the short term, but we see CRM believing in the benefits of this transaction and the redemption of the shares,” said Barclays analyst Rimo Lenzho.

Salesforce third-quarter revenue was $ 5.42 billion, according to IBES figures from Refinitive.

Salesforce has announced that Chief Financial Officer Mark Hawkins will retire in January and be replaced by Chief Legal Officer Amy Weaver.

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