Business

Salesforce has approached Slack with an acquisition offer

Slack Technologies jumped 24%, while Salesforce fell 2.7% after the Wall Street Journal first reported the news

The Slack Technologies Inc. logo is seen on a banner outside the New York Stock Exchange (NYSE) during the company's direct listing in New York, U.S. June 20, 2019. Photo: REUTERS/Brendan McDermid/File Photo
  • Both companies were not immediately available to comment;
  • Salesforce sees the move as a logical extension of its enterprise offerings, the source said, adding there is no certainty of a deal.

Cloud-based software company Salesforce has approached workplace messaging app Slack with an acquisition offer, a source told Reuters on Wednesday.

Salesforce sees the move as a logical extension of its enterprise offerings, the source said, adding there is no certainty of a deal.

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Both companies were not immediately available to comment.

Slack Technologies jumped 24%, while Salesforce fell 2.7% after the Wall Street Journal first reported the news.

Shares of Slack, which has a market value of $16.87 billion as per Refinitiv data, have been underperforming since the company’s market debut last year as it failed to cash in on the rise in number of users working remotely during the pandemic.

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Meanwhile, Salesforce has been beefing up its cloud business through acquisitions and had spent more than $16 billion last year to fend off competition from rivals such as Oracle and German competitor SAP.

Shares of rival Microsoft, which owns Teams chat and conferencing app, were down 0.5% in afternoon trading.

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