Author - Abin John
In 2015, Microsoft was all set to acquire Salesforce but both the companies couldn't agree on the price, and the deal was fizzled. Microsoft offered roughly $55 billion for the company, while its founder and CEO Marc Benioff is said to have kept raising his expectations to as high as $70 billion.
Now Salesforce announced the deal of buying Slack for $27.7 billion, totaling $11.6 billion in cash and the rest in stock which is one of the biggest IT deals ever. Shareholders of the company will get $26.79 in cash and 0.076 shares of Salesforce stock in exchange for each share of Slack.
Marc Benioff says there are the two reasons why it made so much sense: "Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it."
Salesforce CEO - Marc Benioff
Today Salesforce is worth over $220 billion. In recent years Salesforce made several acquisitions.
$2.8B deal for Demandware in 2016
$6.5B deal for MuleSoft in 2018
$15.3B deal for acquiring Tableau in 2019
$1.3B deal for Vlocity in Feb 2020
Slack, founded in 2010 by Stewart Butterfield, grew rapidly and received offers from tech giants like Google, Microsoft, and Amazon. The valuation of Slack was $19.5B last year after it went public last year.
Some facts about the deal -
Slack has 12 million daily active users on its platform and the deal was done around $28B, that's the valuation of $2333 per user.
The company has 142,000 paying customers which includes the likes of IBM, Oracle, Lyft, SAP, and VMWare (top 5).
Salesforce paid around $197,183 per paying customer to acquire Slack.