Summary
Salesforce, Inc. (CRM) announced on December 1, 2020, a significant definitive agreement to acquire Slack Technologies, Inc. This acquisition will be structured as a merger, where Slack will become a wholly-owned subsidiary of Salesforce. The transaction is an all-stock deal with a cash component, valuing Slack at a specific exchange ratio of 0.0776 Salesforce shares and $26.79 in cash for each Slack share. This strategic move aims to enhance Salesforce's Customer 360 platform by integrating Slack's communication and collaboration capabilities, potentially driving significant revenue synergies and expanding its enterprise software dominance. The deal is subject to customary closing conditions, including regulatory approvals and shareholder votes, with an expected completion by August 2021, though extensions are possible. The financing for the cash portion involves both existing cash reserves and a new $10.0 billion bridge loan facility.
Key Highlights
- 1Salesforce to acquire Slack Technologies, Inc. in a stock and cash merger.
- 2The transaction values Slack at 0.0776 shares of Salesforce common stock and $26.79 in cash per Slack share.
- 3The acquisition aims to integrate Slack's collaboration tools into Salesforce's Customer 360 platform.
- 4The deal is subject to customary closing conditions, including regulatory and shareholder approvals.
- 5The transaction is expected to close by August 1, 2021, with potential for extensions.
- 6Salesforce has secured a $10.0 billion bridge loan facility to finance the cash portion of the acquisition.
- 7Key Slack stockholders representing approximately 55% of voting power have entered into a Voting and Support Agreement to approve the merger.