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Salesforce deal to buy Slack expected to be announced Tuesday after market close

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Salesforce’s deal to purchase Slack is anticipated to be introduced Tuesday after markets shut, sources instructed CNBC’s David Faber.

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The deal is anticipated to be about half money and half inventory, the sources mentioned, and can worth Slack at a premium to its present worth. Salesforce is about to report quarterly earnings on Tuesday. Slack’s market cap was greater than $24 billion as of Monday morning.

Shares of Slack rose about 8% Monday on the information. Salesforce shares fell about 1.5%.

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Talks between the 2 firms have been first reported final week by The Wall Street Journal and confirmed by CNBC, sending Slack’s inventory hovering 38%.

Salesforce has made several large acquisitions lately, together with its $6.5 billion deal for MuleSoft in 2018 and its $15.3 billion cope with knowledge visualization firm Tableau.

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The cope with Slack may develop into one of many largest software program offers. IBM purchased Pink Hat for $34 billion in 2019 and Microsoft purchased LinkedIn for $27 billion in 2016.

It may additionally make Slack a extra formidable competitor to Microsoft’s Groups communication product. Slack filed a complaint against Microsoft with the European Commission this summer, alleging it abused its dominant market place to get rid of competitors for Groups. Microsoft has mentioned Groups has benefited through the pandemic from video-conferencing capabilities that Slack lacks.

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