Tech

Salesforce to Acquire Slack for $27.7 Billion

Salesforce to Acquire Slack for .7 Billion
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Salesforce to Acquire Slack for .7 Billion

Salesforce to Purchase Slack for $27.7 Billion

Salesforce inventory has climbed practically 40 p.c this yr, valuing the corporate at $220 billion. On Tuesday, it stated its income rose 20 p.c to $5.24 billion within the three months ending with October.

In February, Salesforce paid $1.3 billion for Vlocity, a cellular software program supplier. Final yr, it purchased Tableau, an information analytics supplier, for $15.3 billion; in 2018, it purchased MuleSoft, an information integration firm, for $6.5 billion; and in 2016, it purchased Demandware, an e-commerce software program maker, for $2.8 billion. It additionally invested $250 million within the knowledge warehousing firm Snowflake simply earlier than it went public in September.

Salesforce has had its personal work collaboration product, known as Chatter, since 2010. Chatter has had “restricted traction,” in keeping with a Goldman Sachs report final week that touted the “strategic advantage” of Salesforce shopping for Slack.

In August, Mr. Benioff instructed analysts that Salesforce was not looking for acquisitions, implying that valuations have been too excessive. “We’re not in M&A surroundings,” he stated, referring to mergers and acquisitions. “I simply don’t see it.”

He added: “Possibly issues might change.”

In September, Mark Hawkins, Salesforce’s chief monetary officer, instructed analysts that the corporate would proceed to be “opportunistic” with respect to offers.

Financial institution of America served as monetary adviser to Salesforce, whereas Qatalyst Companions and Goldman Sachs served as monetary advisers to Slack.

Erin Griffith reported from San Francisco and Lauren Hirsch from New York.

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