US cloud-based software giant Salesforce is in advanced talks of acquiring Slack Technologies for over $17 billion. Sources say that the deal could be announced shortly in the public domain. This news is coming in just months after Salesforce CEO Marc Benioff denied his interest in pursuing any such acquisitions.
After this news reported by the Wall street journal, shares of slack turned bullish and closed at 38% higher on Wednesday while salesforce fell 2.7 percent
However, it is unclear how much the deal would be worth, but sources expect this deal to be over $17 billion.
A source told Reuters that San Francisco-based cloud software company salesforce sees slack as a logical extension of its enterprise offerings, and there is no uncertainty on this deal as of now as neither company was immediately available for comment on the reports.
Salesforce has a massive market of $230 billion after years of significant gains and its steadily rising stock price that trades at approx 100 times its training-year profits.
If a salesforce-slack deal comes into existence, it would be one of the biggest software deals for the industry that would rank among IBM’s $34 billion purchase of Red Hat in 2019 and Microsoft’s $27 billion purchase of networking applications LinkedIn.
The growth of Salesforce has been awe-inspiring for the last two decades. After acquiring Exact Target and Demandware, Salesforce has been steadily growing and making its strong digital experience platform DXP content management capabilities in the CRM system.
With this, some exciting projections until 2024 are also coming in that includes $1.2 trillion of new business revenues and 4.2 million new jobs that predicted salesforce revenue to grow almost 6 times larger than the salesforce itself.
It seems very apt that the latest significant development in the history of salesforce shouts disruptive advancements.