Home » Salesforce buys Slack for USD 27.7 billion

Salesforce buys Slack for USD 27.7 billion

Written By Gracey Maala
Published • December 2nd, 2020
BusinessNews
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Salesforce has announced to acquire the enterprise communications platform Slack for USD 27.7 billion.

Slack will become the new interface for Salesforce Customer 360. The acquisition will be transformative for both customers and the industry. Together, Salesforce and Slack aim to connect employees, customers, and partners with each other and the apps they use every day with their existing workflows. The combination also aims to form the largest open ecosystem of apps and workflows for business.

Slack’s platform integrates with over 2,400 apps that people use. Having said that, with the largest enterprise app ecosystem, the Salesforce platform will be the easiest way to build and deliver apps to connect with customers. The merge will also form the most extensive open ecosystem of apps and workflows for business and grant millions of developers to build the next generation of apps.

Slack is known to lead organizations in every industry globally, from the fastest-growing startups to Fortune 500 companies, including Starbucks, Target, and TD Ameritrade, along with leading academic institutions, non-profits, and governments in over 150 countries.

The board of directors of each of Salesforce and Slack has supported the transaction. Furthermore, the Slack board implies that Slack stockholders approve the transaction and adopt the merger agreement. The deal is expected to close in the second quarter of Salesforce’s fiscal year 2022. This is subject to the Slack stockholders’ approval, the receipt of required regulatory approvals, and other customary closing conditions.

Under the terms of the agreement, Slack shareholders will receive USD 26.79 of cash and 0.0776 shares of Salesforce common stock for each Slack share.

Salesforce has also begun a voting agreement with certain stockholders of Slack common stock. The Slack shares subject to the agreement represent approximately 55% of the Slack common stock’s current outstanding voting power.

Salesforce anticipates funding the cash portion of the transaction consideration with a combination of new debt and cash on Salesforce’s balance sheet. Salesforce has taken a commitment from Citigroup Global Markets Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. for a USD 10 billion senior unsecured 364-day bridge loan facility, subject to customary conditions.

Source: Salesforce