On Tuesday, Salesforce announced that it is acquiring workplace chat app Slack. The deal which began last week is Salesforce’s biggest purchase ever.
Salesforce is paying $27.7 billion for Slack, according to the press release.
The announcement reads: “Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020.”
Salesforce CEO Marc Benioff said: “Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it. 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. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
Slack CEO Stewart Butterfield said: “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.”
He said: “As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
Salesforce is a major competitor to Microsoft in the cloud sector. The company is worth nearly $220 billion and has become one of the largest software companies in the world.