- Salesforce acquires Slack for $27 Billion- the biggest deal in its history.
- This duo will be a major competitor to Microsoft Teams.
- With remote working conditions for employees, this will be an advantage to the company.
San Franciso-based leading cloud computing and CRM company Salesforce makes its biggest acquisition with messaging platform Slack.
Salesforce, the number one Customer Relationship Management giant that unites customers and companies that offers services in various departments like sales, marketing, commerce and service has acquired Slack for $27.7 Billion.
Slack is a messaging app especially for teams to use in workplaces, which aids communication in different platforms for one-on-one or group communication.
Founder, chairman and CEO of Salesforce Marc Russell Benioff told that Salesforce and Slack together will be a huge advantage for both the firms and be a transformation point in the digital world.
Slack has 12 million daily users and Salesforce has 142,000+ rewarding customers, so this deal might be beneficial for making a drastic impact in the all-digital world, mainly after the pandemic.
What does Salesforce do?
Salesforce is a company that provides SaaS-based on cloud and works in Customer Relationship Management (CRM) development.
Many companies have been jumping enthusiastically to join the Salesforce route mainly because of its movement towards helping businesses track their customers’ activity and connect with them among the other services.
The software allows companies to keep track of their customers’ movements, analyze their behavior patterns, customer complaints, and CRM functions enabling cloud storage and access.
Companies that use Salesforce have seen an increase in sales revenue by 27%, lead conversion of 32% and 34% increase in customer satisfaction and also faster customer deployment.
The company has multiple cloud service platforms and has been implementing AI into their platforms, to simplify the analytics workflow.
Salesforce has done several acquisitions in the past including ClickSoftware in August 2019 for $1.35 billion, Tableau Software Inc. in June 2019, and MuleDoft for $6.5 billion in March 2018, but Slack will be the biggest acquisition in the IT giant’s 21-year history.
Salesforce generated revenue that surpassed $20 billion for the year 2020.
Why does Salesforce have to acquire Slack?
In the changing digital world, where workers and employees are encouraged to work remotely, Slack’s popularity has increased and the software has been playing a major role in communication aid, with their free and paid options being top options for communication.
It is also an important crucial to consider that the 2 companies have already collaborated in the past in 2019, for Salesforce for Slack app.
With market giants planning for major collaborations, like Google in its pursuit to purchase and design a number of suite based applications, and Zoom has already become the most used video platform around the world for meetings, Salesforce has definitely taken its best decision with the closure of this deal.
What is Salesforce saying about the acquisition?
Slack will be contributing 12,000 new customers that will generate an estimated total of around $234.5 million in the quarter.
This deal will build the company as a competition to Microsoft’s popular product Teams.
While major companies like Facebook and Twitter are already getting ready to shift their workforce to operate remotely, this acquisition has occurred just in time to claim a major market value.
This deal will be a major competitor to market giants as both companies work hand in hand to build an empire.
