Salesforce.com Set to Acquire Slack Technologies for $27.7 Billion

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)

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