Salesforce Inc is all set to acquire the workplace messaging software Slack, the CRM famed company announced on Tuesday. The step would merge both companies into a single tech giant ready to compete with Microsoft.
According to the official press release, Salesforce will pay $26.79 to Slack shareholders in cash and 0.0776 shares of Salesforce common stock for each Slack share.
Salesforce plans to integrate Slack Connect with Customer 360 — a unified platform to connect with all Salesforce apps for users. Slack will be deeply integrated into every Salesforce Cloud.
“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,” Marc Benioff, CEO of Salesforce, said in the statement.
Slack’s CEO, Stewart Butterfield statement also narrates how great he feels about the deal. 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.”
In 2016, Microsoft was interested in acquiring Slack, but the deal didn’t happen. The two competed with each other shortly after. Microsoft began to develop its workplace messaging software and came up with Teams that gave a tough competition to Slack. On the other hand, Microsoft Dynamics is competing with Salesforce in the CRM market.
Tech analyst Dan Ives has also cherished the merger. He writes in a research note, “Slack, despite facing stiff competition from Microsoft, has been a clearly successful solution set further penetrating enterprises and thus looks like the natural fit for Salesforce to beef up its collaboration and messaging footprint and keep pace with Nadella & Co,” according to Variety.
He also claims that it was a ‘now or never’ deal for Salesforce and writes, “If Salesforce wants to expand its core goldmine of sales and marketing department, this was the moment and thus represents a major shot across the bow against Microsoft.”
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