As Ives points out, the company had already acquired Quip, further boosting the relevance of the Slack acquisition.īut as you view the deal, the pandemic should not be far from mind. Now, Salesforce can better compete thanks to the Slack platform. During the pandemic, much of the narrative has pitted Slack against Microsoft (NASDAQ: MSFT) thanks to its Teams offering. Not only is Salesforce beefing up its portfolio, it is taking on a major rival head on. 1 closing price.Īdditionally, the reasons behind his bullish target are worth paying attention to. That implies nearly 25% upside from its Dec. Ahead of official confirmation of the deal, he released a note with a price target on CRM stock of $300. So what do you really need to understand about Salesforce buying Slack? Perhaps Wedbush analyst Dan Ives has the best perspective. Lastly, investors should know that Slack has been increasingly relevant thanks to the novel coronavirus pandemic.Coming in at nearly twice the total value of the Tableau deal, this is the largest acquisition that Salesforce has ever made.The company previously acquired Mulesoft for $6.5 billion in 2018 and Tableau for $15.3 billion in 2019.Salesforce buying Slack is another move in its direction to expand its footprint into workplace collaboration and analytics.Additionally, Slack CEO Stewart Butterfield will continue to lead the company.Moving forward, the two companies expect the deal to close in mid-2021.Slack stock is slightly positive in after-hours trading, while CRM stock is down 3.7%.This is a 55% premium to the WORK share price prior to the leaked rumors.Importantly, Slack stock shareholders will receive $45.86 per share, including $26.79 in cash.This total sum will be a mixture of cash and stock.Today, they learned the final deal price of $27.7 billion.At the time, investors were excited that the deal would value Slack above its $17 billion market capitalization.Rumors of the deal broke last week, sending WORK stock up more than 20% on Nov.Now we know that it is the largest since International Business Machines (NYSE: IBM) snapped up Red Hat.īut beyond that, here are 13 other things for investors to know now: When rumors first broke, it was clear this could be one of the largest deals in the software industry. Perhaps the biggest thing for investors to note right now is simply the magnitude of the deal.
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