Salesforce has agreed to buy workplace messaging app Slack in a deal worth $27.7bn, the company confirmed tonight.
The mixed stock and share agreement will see Slack shareholders receive $26.79 in cash and 0.0776 shares of Salesforce stock for each Slack share.
Salesforce said the deal, which is set to complete in the second quarter of its 2022 fiscal year, would be “transformative” for the industry.
“This is a match made in heaven,” said Marc Benioff, chair and chief executive of Salesforce.
“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. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
The San Francisco-based group said it will integrate Slack into its core customer relationship management platform, acting as a new interface to help draw customers into its software services.
Shares in Salesforce were down just over three per cent in after-hours trading, while Slack ticked up marginally.
The two tech firms have had differing fortunes this year as a result of the pandemic.
In August Salesforce raised its annual revenue forecast after cashing in on booming demand for cloud services.
By contrast, Slack has struggled to fully capitalise on the shift to home working amid fierce competition from other workplace apps such as Microsoft Teams.
Slack chief executive and co-founder Stewart Butterfield said: “Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive.”