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Equities logo Agrees To Buy Slack for $28 Billion

Slack shareholders will get $26.79 in cash + 0.0776 of a share of Salesforce common stock for each Slack share, or $45.50

Video source: Slack Technologies

(Reuters) – 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

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