By Demi Akinjide, Saihejpal Ailwadhi, Ben Fobel, Zac Greenberg, Will Sergent (University of Bristol), Sally Marshall, Max Raso, Valeriya Shreyber, Izer Onadim (Imperial College London)
Overview of the deal
Acquirer: Salesforce
Target: Slack
Implied Equity Value: XXX
Total Transaction Size: $27.7 billion
Closed date: July 2021 (expected date)
Target advisor: Qatalyst Partners LP and Goldman Sach & Co LLC
Acquirer advisor: Bank of America
Salesforce (NYSE:CRM) and Slack Technologies (NYSE: WORK) established a definitive agreement enabling the acquisition of Slack. Subsequent to this agreement, shareholders of Slack earned $26.79 in cash and 0.0776 shares of Salesforce common stock for each share of Slack - providing a combined $45.86 a share. The acquisition would happen at a 55% premium to the company’s equity. It appears to be confirmed that Salesforce will finance its cash through a series of current cash on hand and new debt; given this, they were provided a 364 day $10 billion bridge loan through J.P.Morgan Chase, Citigroup and Bank of America — indicating the commitment received from this deal.
“Slack changes everything and makes Salesforce a whole new type of company” - Salesforce CEO Marc Benioff
Company Details: Acquirer – Salesforce
Salesforce is a cloud-based software company. It provides a customer relationship management service and sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics and application development.
Founded in 1999, headquartered in San Francisco, United States
CEO: Marc Benioff
Number of employees: 49,000 (2020)
Market Cap: $204.26B (as of 03/12/2020)
EV: $216.19B
LTM Revenue: $17.1Bn
LTM EBITDA: $2.52B
LTM EV/Revenue: 12.64x
LTM EV/EBITDA: 85.79x
Company Details: Target - Slack Technologies, Inc.
Slack Technologies is an international software company. The software Slack itself is a channel-based messaging platform. With Slack, people can work together more effectively, connect all their software tools, and find the information that they need.