The pioneer in business software Salesforce.com Inc. has decided to buy Slack, a popular messaging app for remote working in the biggest cloud-computing Slack Technologies Inc business deal ever, amounting to $27.7 billion to be at par with rival Microsoft.
In its 21 years of operation, Salesforce has paid the highest ever to acquire, settled for a rollicking amount of $27.7 billion to buy Slack Technologies Inc. The San Francisco company, Slack Technologies Inc, is selling its software as a subscription on the cloud for use on any device connected to the net. Individuals need not go through the cumbersome ordeal of installing software on their computers.
Marc Benioff, Salesforce CEO, and founder, finally accepted that today’s industry is going towards software as a service, securing mass users in the long term for concerned software providers. Microsoft’s Office 365 offers team chatting services synonymous with many features in the Slack Technologies’ six-year-old application. Slack filed a case against Microsoft in July in the European Union for pushing in teams into the 365 software, in a manner blocking its removal by users, who may want to use Slack instead. Benioff got the better of Microsoft since their last feat to buy LinkedIn in 2016. Now he feels satisfied as Slack acquisition is a company and platform that happens once-in-a-generation, a central nervous system for a multitude company. Salesforce has been strategically planning in the last few years to diversify into other fields through acquisitions. Its previous largest deal included $15.7 billion to buy Tableau Software, the data analytics specialist. Salesforce’s stock has financed most of the purchase-deal and enjoys a current market value of $220 billion. It is wisely using its stock to pay for half of the Slack purchase, along with borrowing money at a low rate of interest during the pandemic tough times. Legget sees Slack’s acquisition as a smart step-up as it will add to its current software suite and aid in managing the customer relations for the government and business agencies. It meets the current need for salesforce users and customer relation agents to initiate a group topic and collaborate on it remotely. It will help to meet the challenge to communicate remotely in a group during the ongoing coronavirus pandemic.