Salesforce to buy Slack for $37.6bn

Salesforce has arranged to acquire collaboration service Slack for US$27.7 billion ($37.57 billion) as it seeks to better compete against Microsoft.

Under the agreement, Salesforce plans to take ownership of Slack and integrate it with its Salesforce Customer 360 CRM suite.

Salesforce said Slack will be deeply integrated into every Salesforce cloud and be the new interface for Salesforce Customer 360.

The merger will meanwhile enable Slack to expand its presence in the enterprise. Slack will be operated as a unit of Salesforce and continue to be led by current CEO Stewart Butterfield.

Subject to approval from regulators and shareholders, the transaction is expected to close in the second quarter of Salesforce’s fiscal 2022. Salesforce has already secured commitments from Slack shareholders owning 55% of voting shares.

Salesforce said it plans to fund the cash portion of the transaction with a combination of existing cash and new debt.

“This is a match made in heaven. 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,” Salesforce CEO Marc Benioff said.

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