Salesforce has agreed to buy Slack for US$27.7 billion (A$37.5 billion), with CEO Marc Benioff declaring the combination of the two platforms “a match made in heaven”.
Talks were reported to be at an advanced stage last week, and that is now confirmed with news of the buyout.
Salesforce will pay US$26.79 billion in cash and offer the rest in shares.
It said Slack would be combined “with Salesforce Customer 360”, which Salesforce offers to connect all its apps together and to create a single view of the customer across those apps.
“The combination will create the operating system for the new way to work, uniquely enabling companies to grow and succeed in the all-digital world,” Slack said in a statement.
“Together, Salesforce and Slack will give companies a single source of truth for their business and a unified platform for connecting employees, customers and partners with each other and the apps they use every day, all within their existing workflows.”
Slack said it would be “deeply integrated into every Salesforce cloud.”
“As the new interface for Salesforce Customer 360, Slack will transform how people communicate, collaborate and take action on customer information across Salesforce as well as information from all of their other business apps and systems to be more productive, make smarter, faster decisions and create connected customer experiences,” it said.
Coming under Salesforce would allow Slack to expand its presence in enterprises worldwide, the company added.
Slack’s board has recommended that stockholders “approve the transaction and adopt the merger agreement”.
“The transaction is anticipated to close in the second quarter of Salesforce’s fiscal year 2022, subject to approval by the Slack stockholders, the receipt of required regulatory approvals and other customary closing conditions,” it said.
Salesforce said it expects to fund the cash portion of the transaction with a combination of new debt and cash on its balance sheet.