Global CRM giant Salesforce has acquired workplace communications platform Slack for US$27.7 billion (AU$37.35 billion).
Salesforce chair and CEO Marc Benioff says combining Slack with Salesforce was 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," Benioff says.
"I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
Slack CEO and co-founder Stewart Butterfield says the company sees a "massive" opportunity working with Salesforce.
“As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility," Butterfield says.
"Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
Together, Salesforce and Slack will offer companies 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 will be integrated into every Salesforce Cloud.
As the new interface for Salesforce Customer 360, Slack will companies to communicate, collaborate and take action on customer information across Salesforce as well as information from all of their other business apps and systems.
Upon the close of the transaction, Slack will become an operating unit of Salesforce and will continue to be led by CEO Stewart Butterfield.
The board of directors of each of Salesforce and Slack have approved the transaction and the Slack board recommends that Slack 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.
Salesforce has also entered into a voting agreement with certain stockholders of Slack common stock, under which each such stockholder has agreed to vote all of their Slack shares in favor of the transaction at the special meeting of Slack stockholders to be held in connection with the transaction, subject to certain terms and conditions.
The Slack shares subject to the agreement represent approximately 55% of the current outstanding voting power of the Slack common stock.
Salesforce expects to fund the cash portion of the transaction consideration with a combination of new debt and cash on Salesforce’s balance sheet.
Salesforce has obtained a commitment from Citigroup Global Markets Inc., Bank of America, N.A. and JPMorgan Chase Bank, N.A. for a US$10.0 billion senior unsecured 364-day bridge loan facility, subject to customary conditions.
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