Salesforce signs agreement to acquire Slack

In a $ 27.7 billion report, the CRM giant brings together the popular chat platform. Updated.

Then at 4 PM, she rang the bell to close the New York Stock Exchange. Tuesday’s EST awaits investors, Salesforce and Slack users, and the broader martech community as they await the expected announcement of a $ 1 billion acquisition of the popular collaboration platform. From the giant’s CX and CRM. Slack already has tight integrations with Salesforce, but the acquisition provides a key entry point for project management and collaboration space.

Then came the news. Salesforce announced it has signed a definitive agreement to acquire Slack in a $ 27.7 billion deal.

Some see this as a smart move on Salesforce’s part. Others, mostly Slack users, fear that a popular tool (with a free option) will be devoured by a much larger company. Before the news, we looked for some commentators.

The position of Councilor Slack. David Markovich is not just a vulnerable energy consumer; He is also the founder of the consulting firm Slack ChatOverload and is president of OnlineGeniuses, the Slack-based SEO and digital marketing community. We immediately asked about the news. ‘I find it interesting, Salesforce is about project management and internal communication. I was wondering why it took so long? Bet on Salesforce: I’m curious what happens.

Was he worried about speculation that this could mean the end of Slack’s free experience? “Would they attract free users or would they do the opposite?” He said. “Would they support communities? That would be great.

Consolidation? Scott Brinker, president of chiefmartec.com, sees this as an example of simultaneous consolidation and diversification in the Martech space. He told us: “The martech industry is increasingly structuring itself as a small number of established platforms with large and diverse application ecosystems revolving around it. Slack has built an extraordinary ecosystem of thousands of applications and integrations around its platform. collaboration. And communications “. he supports Slack’s open platform principles. I think there are many opportunities for growth. The more platforms are created, the more diverse the application ecosystems surrounding them can become.

A former Salesforce CEO. Gregg Johnson, CEO of the Invoca Conversation Intelligence platform, was previously the CEO of Salesforce and worked on the Salesforce Chatter community and collaboration tool. He said, “The Slack acquisition would be a game-changer for Salesforce. It gives you the opportunity to become a digital network where businesses can communicate. Salesforce has ambitious plans to go beyond sales, services, and acquisitions. Van Mulesoft and Tableau were the first steps in front-end data collection, but both tools are used by a relatively small group of experienced users.

Update: Salesforce CEO Marc Benioff told CNBC, “Slack changes everything and makes Salesforce a whole new type of business. Customers are redesigning the way they work. With Slack, it now provides an incredibly reliable window into” All our services and the whole of Benioff also said it “dreams” of selling Salesforce’s annual sales of up to $ 50 billion.

Because we care. It is the largest acquisition in the history of Salesforce, a company that has significantly expanded its offering through acquisitions. It appears to be the second-largest acquisition of the year in the tech space, following Nvidia’s $ 40 billion deal to acquire Arm (which is overseen by regulatory agencies). This is a sign that Salesforce is ready to take on Microsoft, which offers Microsoft Teams as a chat and collaboration tool. It affects many of us at home: who hasn’t been a slow user for a while?

Slack will be the new Salesforce Customer 360 interface

Salesforce is CRM No. 1 1 1 that empowers companies to sell, manage, market, and conduct business on the go. Slack brings together people, data, and tools so that teams can work together and get their work done from anywhere. Slack Connect extends the benefits of Slack to enable communication and collaboration between employees and all of their external partners, from suppliers to customers.

Slack is deeply integrated into each Salesforce Cloud. As a new interface for Salesforce Customer 360, Slack will change the way people communicate, collaborate, and act based on customer information in Salesforce, as well as information from all other business applications and systems, to be more productive. Make smarter, faster, and more creative decisions. connected customer experiences.

Slap to expand the business footprint as part of the world’s No. 1 CRM

Slack serves leading organizations in all sectors around the world, from the fastest-growing companies to Fortune 500 companies like Starbucks, Target, and TD Ameritrade, along with leading academic, nonprofit, and government organizations in more than 150 countries.

As part of the world’s No. 1 CRM, Slack allows you to expand your business presence, not just with Salesforce customers, but for any business in digital transformation. Upon completion of the transaction, Slack will become a Salesforce business unit and remain led by CEO Stewart Butterfield.

Combination to form the largest open ecosystem of business applications and workflows

Connecting people and data across systems, applications, and devices are one of the biggest challenges companies face in today’s digital world.

Slack’s open platform can be seamlessly integrated with more than 2,400 applications that people use to collaborate, communicate and get the job done. With the broadest business application ecosystem, the Salesforce platform is the simplest way to build and deliver applications to communicate with customers in a whole new way.

Together, Salesforce and Slack will create the broadest open source ecosystem and workflow for business applications, allowing millions of developers to create cutting-edge applications, with clicks instead of code.

Details of the proposed transaction

The boards of directors of Salesforce and Slack approved the transaction, and the board of Slack is advising Slack shareholders to approve the transaction and the merger agreement. The transaction is expected to close in the second quarter of 2020 at Salesforce, subject to approval by Slack shareholders, receipt of necessary approvals, and other general closing conditions.

Salesforce also entered into a voting agreement with certain Slack ordinary shareholders and each of the shareholders agreed to vote all of their Slack shares in favor of the transaction at the special Slack shareholders’ meeting held in connection with the transaction, subject to certain requirements. Slack’s shares covered by the agreement represent approximately 55% of the current outstanding voting rights of Slack’s common shares.

Salesforce plans to finance the cash portion of the transaction fee with a combination of new debt and cash on Salesforce’s balance sheet. Salesforce received a commitment from Citigroup Global Markets Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A., for a $ 10.0 billion, 364-day, 304-day mortgage, subject to customized terms and conditions. Slack will be the new Salesforce Customer 360 interface

Salesforce is CRM No. 1 1 1 that empowers companies to sell, manage, market, and conduct business on the go. Slack brings together people, data, and tools so that teams can work together and get their work done from anywhere. Slack Connect extends the benefits of Slack to enable communication and collaboration between employees and all of their external partners, from suppliers to customers.

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