Business

Salesforce to buy workplace app Slack in $27.7 billion deal

The deal is expected to close in the second quarter of Salesforce's fiscal year 2022

Slack Technologies 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
Photo: Reuters/Brendan McDermid
  • Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share;
  • The deal is expected to close in the second quarter of Salesforce’s fiscal year 2022.

Salesforce said on Tuesday it would buy workplace messaging app Slack in a $27.7 billion cash-and-stock deal, as the cloud-computing pioneer ramps up its remote work offerings and takes on larger rival Microsoft.

Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share.

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Slack shares fell 3.4% to $42.43 in extended trading, while Salesforce’s stock declined nearly 3%.

The bid comes as Slack struggles to fully capitalize on the switch to remote working during the COVID-19 pandemic in the face of fierce competition from Microsoft’s Teams and other workplace apps.

The deal is expected to close in the second quarter of Salesforce’s fiscal year 2022.

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