Salesforce.com Set to Acquire Slack Technologies for $27.7 Billion
December 01 2020 - 4:58PM
Dow Jones News
By Adriano Marchese
Salesforce.com Inc. said Tuesday that it has agreed to acquire
the enterprise communications company, Slack Technologies Inc. for
an enterprise value of $27.7 billion.
Under the terms of the agreement, the San Francisco,
California-based marketing software tech giant said that Slack
shareholders will receive $26.79 in cash, and 0.0776 shares of
Salesforce stock for each Slack share.
To fund the transaction, Salesforce said that it intends to pay
with a combination of new debt and cash on its balance sheet, with
a commitment from a syndicate of lenders for a $10 billion senior
unsecured 364 bridge loan facility. These represent around 55% of
the current outstanding voting power of the Slack stock.
Salesforce said that it has entered into a voting agreement with
certain Slack stockholders to vote in favor of the transaction at
the special meeting of Slack stockholders.
Salesforce said that it will integrate Slack into its cloud
network, becoming an operating unit of Salesforce under the
continued leadership of Slack Co-Founder and Chief Executive
Stewart Butterfield.
"Personally, I believe this is the most strategic combination in
the history of software, and I can't wait to get going," Mr.
Butterfield said.
The transaction is expected to close in the second quarter of
Salesforce's fiscal 2022.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 01, 2020 16:43 ET (21:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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