Video source: Slack Technologies
(Reuters) – Salesforce.com Inc agreed to buy workplace messaging app Slack Technologies Inc for about $28 billion in its biggest deal, as the cloud-computing pioneer bolsters its remote-work offerings and takes on larger rival Microsoft Corp.
Slack shareholders will receive $26.79 in cash and 0.0776 of a share of Salesforce common stock for each Slack share, or $45.50 per share based on Salesforce’s closing price on Tuesday.
The bid represents a premium of 54% since the first report emerged last week about the deal talks.
Slack shares fell marginally to $43.70 in extended trading on Tuesday, while Salesforce’s stock declined nearly 4%.
The bid comes as Slack struggles to fully capitalize on the switch to remote working during the COVID-19 pandemic in the face of fierce competition from Microsoft’s Teams and other workplace apps.
The deal is expected to close in the second quarter of Salesforce’s fiscal year 2022 (May-July 2021).
Salesforce also reported third-quarter revenue of $5.42 billion on Tuesday, beating analysts’ estimate of $5.25 billion, according to IBES data from Refinitiv.
Reporting by Munsif Vengattil; Editing by Sriraj Kalluvila
_____
Source: Reuters
Read Next
