× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Salesforce to buy workplace app Slack in Sh3 trillion deal

SCI & TECH
By Reuters | December 2nd 2020

Salesforce.com Inc has agreed to buy workplace messaging app Slack Technologies Inc in a Sh3 trillion ($27.7 billion) deal, the biggest by the cloud-computing pioneer as it bets on an extended run for remote working and sharpens its rivalry with Microsoft.

The deal enables Salesforce to provide a unified platform for businesses to connect their employees, customers and partners with each other and the apps they use, bolstering its enterprise portfolio.

For Slack, the deal comes as it struggles to fully capitalize on the switch to remote working during the COVID-19 pandemic.

Slack changed workplace communications by focusing on real-time messaging that could be broken into conversations with groups assembled on the fly, a more nimble platform than email.

But the messaging style that Slack helped create has become an extremely competitive space, with larger, older competitor Microsoft Corp aggressively promoting its similar Teams product with integrated video and voice calling.

Microsoft has also bundled Teams with many of its office software packages, an added attraction for companies looking to save costs during the disruption caused by the outbreak.

“The deal allows Salesforce to get deeper into collaboration and business communication and it’s good for Slack, especially to grow their penetration into non-tech companies,” DA Davidson analyst Rishi Jaluria said.

Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, or $45.5 per share based on Salesforce’s closing price on Tuesday.

The offer represents a premium of 54 per cent since the first report emerged last week about the deal talks.

Slack shares fell marginally to $43.73 in extended trading on Tuesday, while Salesforce’s stock declined above 4 per cent.

“(Salesforce) shares will likely be range-bound in the short term given the large transaction, but we are believers in the benefits of this deal to CRM and see shares recovering,” Barclays analyst Raimo Lenschow said.

Separately, Salesforce reported third-quarter revenue of $5.42 billion, beating analysts’ estimate of $5.25 billion, according to IBES data from Refinitiv.

Salesforce also said Chief Financial Officer Mark Hawkins would retire in January and would be replaced by Chief Legal Officer Amy Weaver.

Share this story
BRICS media leaders meet for post-Covid-19 exchanges, cooperation
Xinhua is willing to strengthen cooperation with media from other countries to provide spiritual impetus for defeating the pandemic
Survey: Why 40 pc of workers want to quit their jobs
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they are not the only ones.
.
RECOMMENDED NEWS
Feedback