Salesforce To Buy Slack Tech In A $27.7 Bln Deal

(RTTNews) - Salesforce (CRM) Tuesday said it has agreed to buy Slack Technologies, Inc. (WORK), for an enterprise value of about $27.7 billion.

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

"Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it," said Marc Benioff, Chair and CEO, Salesforce. "This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I'm thrilled to welcome Slack to the Salesforce Ohana once the transaction closes."

The board of directors of both Salesforce and Slack have approved the transaction and the Slack board recommends that Slack stockholders approve the transaction.

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

Salesforce expects to fund the cash portion of the transaction with a combination of new debt and cash on hand. Salesforce has obtained a commitment from Citigroup Global Markets Inc., Bank of America, N.A. and JPMorgan Chase Bank, N.A. for a $10.0 billion loan facility.