Salesforce has inked a definitive agreement to buy Slack Technologies for an enterprise value of roughly $27.7 billion based on the Monday (Nov. 30) closing price of Salesforce’s common stock, according to a Tuesday (Dec. 1) announcement.
“[Slack CEO and Co-Founder Stewart Butterfield] and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” Salesforce Chair and CEO Marc Benioff said in the announcement. “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.”
Slack’s and Salesforce’s boards have given the green light for the deal, according to the announcement, while the board of Slack suggested that investors approve it and adopt the combination agreement.
The deal is expected to close in the second quarter of Salesforce’s Fiscal Year 2022, depending on the go-ahead from Slack investors, the receipt of the necessary regulatory approvals and “other customary closing conditions,” according to the announcement.
Salesforce has entered into a voting accord with some Slack common stock investors to have them vote all of their shares for the deal at a special Slack shareholder meeting “subject to certain terms and conditions,” according to the announcement. Shares of Slack subject to the deal comprise roughly 55 percent of the present outstanding voting power of the Slack common stock.
“Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going,” Butterfield said in the announcement.
Market watchers had been anticipating that Salesforce would announce an agreement to purchase Slack following the market close on Tuesday.
The arrangement would be the third major acquisition by Salesforce in recent times, as previously reported. An acquisition could spell more competition for Microsoft, which owns a rival communication offering called Teams.
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