Salesforce Is Acquiring Slack
Cloud computing giant Salesforce is acquiring the workplace chat app Slack.
Salesforce (NYSE: CRM), the global leader in CRM, and Slack Technologies, Inc. (NYSE: WORK), the most innovative enterprise communications platform, has entered into a definitive agreement under which Salesforce will acquire Slack. Under the terms of the deal, 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.
Combining Slack with Salesforce Customer 360 will be transformative for customers and the industry. The combination will create the operating system for a new way to work, uniquely enabling companies to grow and succeed in the all-digital world.
“Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” said Marc Benioff, Chair and CEO, Salesforce. “This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform how everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
“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 Stewart Butterfield, Slack CEO and Co-Founder. “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.
I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
Acquisition to Create the Operating System for the New Way to Work
This year’s events have greatly accelerated the move by companies and governments to an all-digital world, where work happens wherever people are—whether in the office, at home, or somewhere in between. They need to deliver connected experiences for their customers across every touchpoint and enable their employees to work seamlessly wherever they are.
Together, Salesforce and Slack will give companies a single source of truth for their business and a unified platform for connecting employees, customers, and partners with each other and the apps they use daily within their existing workflows.
Slack to Become the New Interface for Salesforce Customer 360
Salesforce is the #1 CRM enabling companies to sell, service, market, and conduct commerce anywhere. Slack brings people, data, and tools together so teams can collaborate and get work done from anywhere. Slack Connect extends the benefits of Slack to enable communication and collaboration between a company’s employees and all its external partners, from vendors to customers.
Slack will be deeply integrated into every Salesforce Cloud. As the new interface for Salesforce Customer 360, Slack will transform how people communicate, collaborate and take action on customer information across Salesforce and information from all of their other business apps and systems to be more productive, make smarter, faster decisions, and create connected customer experiences.
Slack To Expand Enterprise Footprint as Part of the World’s #1 CRM
Slack serves leading organizations in every industry worldwide, from the fastest-growing startups to Fortune 500 companies, such as Starbucks, Target, and T.D. Ameritrade and leading academic institutions, non-profits, and governments in more than 150 countries.
As part of the world’s #1 CRM, Slack will be able to expand its presence in the enterprise, not just among Salesforce customers but for any company undergoing digital transformation. Upon the close of the transaction, Slack will become an operating unit of Salesforce and continue to be led by CEO Stewart Butterfield.
Combination to Form the Largest Open Ecosystem of Apps and Workflows for Business
Connecting people and data across systems, apps, and devices is one of the biggest challenges companies face in today’s all-digital world.
Slack’s open platform seamlessly integrates with over 2,400 apps people use to collaborate, communicate and get work done. With the most powerful enterprise app ecosystem, the Salesforce platform is the easiest way to build and deliver apps to connect with customers in a whole new way.
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.
Details on the Proposed Transaction
The board of directors of each of Salesforce and Slack have approved the transaction, and the Slack board recommends that Slack stockholders approve the transaction and adopt the merger agreement. The transaction is anticipated to close in the second quarter of Salesforce’s fiscal year 2022, subject to approval by Slack stockholders, the receipt of required regulatory approvals, and other customary closing conditions.
Salesforce has also entered into a voting agreement with certain stockholders of Slack common stock, under which each such stockholder has agreed to vote all of their Slack shares in favor of the transaction at the special meeting of Slack stockholders to be held in connection with the transaction, subject to specific terms and conditions. The Slack shares subject to the agreement represent approximately 55% of the current outstanding voting power of the Slack common stock.
Salesforce expects to fund the cash portion of the transaction consideration with a combination of new debt and cash on Salesforce’s balance sheet. Salesforce has obtained a commitment from Citigroup Global Markets Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A., for a $10.0 billion senior unsecured 364-day bridge loan facility, subject to customary conditions.
About Salesforce
The global CRM leader, Salesforce empowers companies of every size and industry to digitally transform and create a 360° view of their customers. For more information about Salesforce (NYSE: CRM), visit www.salesforce.com.
Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase Salesforce applications should decide based on now available features. Salesforce has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the “CRM.” For more information, please visit https://www.salesforce.com, or call 1-800-NO-SOFTWARE.
Cloud computing giant Salesforce is acquiring the workplace chat app Slack.
About Slack
Slack has transformed business communication. It’s the leading channel-based messaging platform millions use to align their teams, unify their systems, and drive their businesses forward. Only Slack offers a secure, enterprise-grade environment that can scale with the largest companies in the world. It is a new layer of the business technology stack where people can work together more effectively, connect all their other software tools and services, and find the information they need to do their best work. Slack is where work happens.