Salesforce set to acquire Slack Technologies - report

News IT Global 26 NOV 2020
Salesforce set to acquire Slack Technologies - report
Salesforce.com is expected to announce the acquisition of Slack Technologies in a matter of days, the Wall Street Journal reported, citing sources familiar with the matter. The companies are in advanced talks, and although there is no guarantee, the sources believe the news could come out by the time Salesforce reports its third-quarter results, on 1 December. Slack had a market value of over USD 17 billion on 25 November. 

Salesforce, based in San Francisco in the US, was started 21 years ago and is still run by co-founder Marc Benioff. It provides software via the cloud through a subscription and has a market value of about USD 230 billion. Benioff has gradually moved to expand the company's services, now providing everything from data analysis using AI to managing staff. That has put Salesforce in more direct competition with other business-software vendors such as Microsoft, among others. 

Launched in 2009, Slack is also based in San Francisco, led by co-founder and CEO Stewart Butterfield. It has developed instant-messaging software as an alternative to office email. Amid the coronavirus pandemic and consequent lockdowns, new Slack installations reached 1.8 million in March, a monthly record. They have so far this year gone 50 percent higher than the year before, according to Sensor Tower, which tracks app downloads. Nevertheless, the company withdrew its guidance for 2020 billings, citing ongoing uncertainty.

Categories:

IT

Companies:

Salesforce,  Slack Technologies

Regions:

Global

Tags:

Data services, IT - applications, Corporate strategy, M&A buyouts & divestments

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