Cloud computing pioneer Salesforce has agreed a $27.7bn (£20.6bn) deal to buy Slack, the workplace messaging app that has enjoyed a near-doubling of its market value during the COVID-19 pandemic.
Salesforce.com described the acquisition as a 'match made in heaven' as the addition of Slack enables the company to offer a unified platform for businesses to connect with staff and match rival Microsoft and its Teams product.
Slack has struggled to make the same headway, in a competitive market, during a coronavirus crisis to date that has forced the closure of offices as remote working takes the strain instead.
Slack is a new way to communicate with your team. It’s faster, better organised and more secure than email.
- Adaptive Pricing or Bust: Slack’s Formula for Disruption Hosted subscription models contain the seeds of their own disruption. Good SaaS companies generally have a well-developed API strategy and integrate with many other services.
- The features and prices on this page are current as of April 17, 2020. See Slack.com for the most current information. Slack’s features. Slack’s channel feature is its bread and butter — and a staple among Finder employees both in Canada and across the globe.
Microsoft, for example, has been able to capitalise on the shift through its existing corporate relationships and marketing budget.
It has also bundled Teams with many of its office software packages.
Under the deal, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share.
That is $45.5 per share, based on Salesforce's closing price on Tuesday, a premium of 54% since news of negotiations emerged a week ago.
More from Business
Slack Pricing Uk 2019
Slack shares are 95% up in the year to date but fell back slightly in after-hours dealing in New York.
Stewart Butterfield, Slack's chief executive and co-founder, said the deal offered a 'massive' opportunity.
'As software plays a more and more critical role in the performance of every organisation, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organisational agility,' he told investors.
Marc Benioff, his counterpart at Salesforce, said: 'Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it.
How Does Slack Pricing Work
'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.
Slack Pricing Uk 2020
'I'm thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.'