The cloud provider Salesforce is said to be interested in taking over the office chat app Slack. The Wall Street Journal reported on Wednesday. The talks have progressed so far that a successful conclusion could be announced in the coming days. Maybe as soon as Salesforce releases its quarterly results.
There is no guarantee that the takeover will work. But if a deal is reached, the cloud provider would make a major advance into office communication. Slack offers a chat app for internal communication among colleagues. Most recently, this was expanded so that companies can also communicate with their customers via Slack.
This is where things get interesting for Salesforce. The cloud provider already has two communication tools, Chatter and Quip, which can be used together with the customer management tools.
Slack stock rises up to 37 percent
If the takeover is successful, it would be the largest in the history of the cloud provider. Slack’s market cap is around $ 17 billion – and the acquisition price is likely higher. Slack’s papers have since increased by up to 37 percent to around $ 40. At the same time, the shares of Salesforce fell by almost five percent. Both companies have not yet issued a statement.
Salesforce has made two major acquisitions in the past few years: The cloud provider bought data visualization company Tableau for over $ 15 billion in 2019. A year earlier, Salesforce bagged software maker Mulesoft for $ 6.5 billion.
Actually, Salesforce CEO Marc Benioff said when the quarterly results were announced in August that the company would primarily focus on the integration of Mulesoft and Tableau this year. Even so, the company has already made a few smaller acquisitions in 2020 – it bought Vlocity for $ 1.3 billion in February and a marketing network in early March for a private amount.
Analysts recently speculated that Salesforce may rely on the acquisitions to sustain the company’s rapid growth pace. A note from a UBS analyst said the cloud provider suffered from a “lack of innovation”.
Together against Microsoft
Salesforce and Slack have been in partnership since 2016, and expanded last year to make it easier for users to switch between services.
Microsoft is a big rival for both companies: Salesforce competes with Microsoft Teams for tools for customer relationship management and Slack. A merger would therefore make sense for both companies and would increase the competitive pressure on Microsoft.