In one of the biggest technology mergers in recent years, cloud-based software giant Salesforce has agreed to acquire workplace messaging app Slack for $27.7 billion.
“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,” CEO of Salesforce Marc Benioff said in a statement.
We’re thrilled to be acquiring Slack!
Combining @SlackHQ with #Customer360 will be transformative, creating the operating system for the new way to work. Together, we’ll enable companies to succeed in the all-digital, work-from-anywhere world.Important: https://t.co/bRXZ1Iu1fj pic.twitter.com/xcPH5hRb6J
— Salesforce (@salesforce) December 1, 2020
Founded in 2009 by Stewart Butterfield and Cal Henderson, Slack transformed from being just a startup to being one of the best and most loved workplace chat apps. It started off as an effective alternative to email to manage interoffice communication and at the time of its IPO in April 2019, it reported more than a whopping 10 million daily active users!
However, it failed to capitalize on its meteoric rise in the face of stiff competition from Microsoft, Facebook, and a host of other IT companies that launched their own versions of office chat and productivity platforms. And inspite of the increase in remove work, it did not succeed in being profitable in the past three quarters.
“As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going,” Butterfield said in a statement.
This is one of the most interesting tech mergers in recent times and will be transformative for both, the industry and customers.
