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Salesforce’s deal to buy Slack is expected to be announced on Tuesday after markets close, sources told CNBC’s David Faber.
The deal is expected to be half the cash and half the shares, the sources say, and will cost Slack a premium over its current price. Salesforce is expected to release its quarterly results on Tuesday. Slack’s market cap was over $ 24 billion as of Monday morning.
Slack shares were up about 8% on the news Monday. Salesforce shares fell about 1.5%.
The talks between the two companies were first reported last week by the Wall Street Journal and confirmed by CNBC, pushing Slack’s stock up 38%.
Salesforce has made several significant acquisitions in recent years, including its $ 6.5 billion contract for MuleSoft in 2018 and its $ 15.3 billion contract with data visualization company Tableau.
The deal with Slack could become one of the biggest software deals. IBM bought Red Hat for $ 34 billion in 2019 and Microsoft bought LinkedIn for $ 27 billion in 2016.
It could also make Slack a more formidable competitor to Microsoft’s Teams communications product. Slack filed a complaint against Microsoft with the European Commission this summer, alleging it abused its dominant position in the market to eliminate competition for teams. Microsoft said Teams benefited during the pandemic from video conferencing capabilities that Slack lacked.
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