The much-discussed Slack takeover is expected to be confirmed tomorrow, according to sources with knowledge of the deal, who state that the acquisition by CRM giant Salesforce will be completed in half cash and half stock.
The deal is expected to value Slack at a premium to its current price, with its market capitalization currently standing above $24 billion. In response to the news that the deal was close to being finalized, Slack shares rose by around 8%, while Salesforce shares experienced a small decline.
Reports that a deal was in the works surfaced last week, sending Slack shares surging in value. If the acquisition is completed, it would represent quite the coup for Salesforce CEO Marc Benioff, who has been interested in bringing Slack under the Salesforce umbrella for some time.
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The price is right
It is thought that Salesforce was originally interested in purchasing Slack before the latter firm’s IPO last year, but Benioff believed that the price being asked was too steep. Now, it seems as though the price is more favorable, particularly with Slack shares enduring a difficult 2020.
Salesforce has made some sizeable acquisitions in recent years, paying $6.5 billion for integration software company Mulesoft in 2018 and $15.3 billion for Tableau last year. The Slack purchase, however, is likely to dwarf both of those, potentially becoming one of the largest software deals in recent years.
The acquisition is likely to prove mutually beneficial for both companies. On the one hand, Slack could be employed to funnel users towards some of Salesforce’s other products, while the tie-up could help Slack in its battle against Microsoft Teams to become the leading workplace collaboration tool.
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