. 27.7 billion contract seller to buy workplace app slack

Slack, a sales force workplace messaging application. Has agreed to buy into a $ 27.7 billion deal, the largest by the cloud-computing pioneer, which is challenging the extended flow for long-distance work and sharpening its competition with Microsoft.

The agreement provides businesses with an integrated platform to connect their employees, customers and partners with each other, and the applications they use enhance its corporate portfolio.

As for Slack, the deal comes as Covid-19 struggles to make full use of switching to long-distance work during epidemics.

Slack transformed workplace communications by focusing on real-time messaging, which can be broken down into conversations with groups assembled on the fly faster than email.

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The messaging style that helped create Slag has become a highly competitive space, with big, old rival Microsoft actively promoting its similar team products through integrated video and voice calling.

Microsoft has teamed up with several of its Office software packages, which is an added attraction for companies that save costs in the event of an explosion.

“The deal allows salesforce cooperation and business communications to go deeper, and it’s good for Slack, especially to nurture their penetration into non-tech companies,” said DA Davidson analyst Rishi Zaluria.

Slack shareholders for each slack share. 26.79 in cash and 0.0776 shares of Salesforce common stock or 5.5.5 per share based on the Salesforce closing price on Tuesday.

The offer represents a 54% premium since the first report on contract negotiations was released last week.

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Shares of Slak fell slightly to $ 43.73 in extended trading on Tuesday, while salesforce shares fell more than 4%.

“(Salesforce) shares will be limited in the short term given the large transaction, but we trust the benefits of this agreement to CRM and see the shares recover,” said Barclays analyst Rimo Lenshow.

Separately, the salesforce reported $ 5.42 billion in revenue in the third quarter, beating analysts’ estimates by $ 5.25 billion, according to Refiniti’s IPES data.

Salesforce has announced that Chief Financial Officer Mark Hawkins will retire in January and will be replaced by Chief Legal Officer Amy Weaver.