The American cloud-based software company Salesforce has now certified a milestone for their company as they will now acquire and own the renowned business chat application Slack previously owned by its self-named company Slack technologies. The announcement was made on Tuesday, Dec. 1.
Rumors about the deal have begun to spread last week, with Salesforce being reported to enter a "multi-billion" deal to buy and own the chat app company. This would have been one of the biggest acquisition deals marked in the history of the business software and technology industry and Salesforce's largest secured deal ever to date.
Salesforce will have a total of $27 billion purchase of Slack. If broken down to minimal numbers, the cloud software giant will buy Slack for an amount of $26.79 per share and 0.0776 shares of Salesforce common stock per Slack shareholder and costs $45.86 a share. It accumulates a massive total purchase of $27 billion in its overall enterprise value.
This now tops the list of Salesforce's acquisition deals throughout its 21-year course in the business software industry. The company's notable deals include its acquisition of the data development and visualization company Tableau in 2019. They spent around $15.3 billion to have the company's ownership. Another one was the $6.5 billion deal that made them acquire the rights to the data arranging and managing software company Mulesoft which happened in 2018.
A 'Match Made in Heaven'
According to Salesforce Chief Executive Officer (CEO) Marc Benioff, the newly found acquisition of Slack signifies a much-better future not just for the chat app company but also for Salesforce as well. he describes this as a "match made in heaven", wherein the two technologies offered could eventually shape the future of enterprise software. It could also integrate the technology that may introduce newer ways of digital and "work from anywhere" setup on businesses, organizations, and companies all around the world and within its reach.
Slack CEO Steward Butterfield also expressed remarks about the deal, pointing out that their app can offer a wider variety of features for businesses, groups, companies, and organizations, but at the same time, the simplicity and ease to use characteristic of their app as well. He believes that the move done by Salesforce could signify the "most strategic combination in the history of software', along with his excitement to work with the cloud-based tech company who eventually would be his boss.
With Slack entering a downward phase on sales when they entered the year 2020. 40% of the company's total value was lost when it became public, and another 16% right before the rumors of the deal has surfaced in the business world and the internet. Yet the deal has brought up Slack's A-game, with up to 48% rise in its value upon the deal's announcement to the public's knowledge.