Summary
Salesforce, Inc. (CRM) has officially closed its acquisition of Slack Technologies, Inc. ("Slack"), as announced in this Form 8-K filed on July 21, 2021. This significant event, effective July 21, 2021, marks the culmination of the merger agreement initially signed in December 2020. The acquisition represents a major strategic move for Salesforce, integrating Slack's communication platform into its customer 360 ecosystem. Investors should note the terms of the acquisition, which involved a mix of cash and stock. Each share of Slack common stock was converted into 0.0776 shares of Salesforce common stock and $26.79 in cash. This structure implies a substantial cash outlay and dilution for Salesforce shareholders. The filing also addresses the implications for Slack's convertible notes, which will now be convertible into cash and Salesforce shares, reflecting the merger consideration.
Key Highlights
- 1Salesforce has completed the acquisition of Slack Technologies, Inc. effective July 21, 2021.
- 2The acquisition was structured as a merger, with Slack surviving as a wholly owned subsidiary.
- 3Each Slack share was exchanged for 0.0776 shares of Salesforce common stock and $26.79 in cash.
- 4The merger consideration involves both cash and stock, impacting Salesforce's balance sheet and shareholder equity.
- 5Slack's convertible senior notes will now be convertible into cash and Salesforce shares, rather than Slack shares.
- 6The filing incorporates by reference the original merger agreement and related indentures.
- 7A press release announcing the closing of the merger was issued on July 21, 2021.