Slack merger7/31/2023 ![]() With this integration, Slack will allow access to Salesforce data records within the application. New and existing customers can integrate with Sales Cloud and Service Cloud via Slack App integrations. Additionally, access to Slack’s App Directory and Slack APIs remain unchanged. Well-known features, such as custom channels, Slack Connect, team chat, and video chats, are available as part of Slack-First Customer 360. All of Slack’s existing feature and pricing tiers, including a free option, are available under the new product naming scheme. Slack functionality can now be purchased as Slack-First Customer 360. More recently, the two companies held a joint event detailing how Slack’s functionality will coexist with Salesforce. When Salesforce announced the completion of the acquisition, it also revealed that no immediate changes would occur to Slack’s functionality, branding, or leadership structure. Roughly seven months later, the acquisition is complete, and the future landscape is more evident. ![]() At the time, few details were released regarding how the two companies would operate or the potential impacts of the merger. I take a discount to all of these figures to arrive at my 15% premium price target, which I believe can be realized by the end of the year.In December 2020, Salesforce announced the multibillion-dollar acquisition of Slack. Just looking at the cohort that trades at 25%-35% NTM revenue growth, the peer group implies a 20%+ premium. If we take an average of all enterprise SaaS names and apply that to slack, it implies a healthy 50% premium. When comparing Slack to peers on a revenue growth basis, we can see that it trades a discount on a growth adjusted EV/NTM basis. I do not see Salesforce bidding less than $20 billion for the asset, and I also believe there is strategic reasons for it to have been a competitive bidding process. I could see a $30 billion acquisition price (implying a 30%+ premium to its closing price on Friday) or a more conservative $25 billion price (implying 15% upside). When looking at the price tag, I believe Slack is trading at a healthy 15% discount to its value. Although Slack would be the largest to date, I believe it makes strategic sense and Salesforce is getting a premium asset at a discount. Benioff and team are seasoned experts at acquiring assets and integrating them. ![]() A Slack acquisition would make a lot of strategic sense within the Salesforce Cloud context, both on the sales and marketing product lines. Salesforce has been on an M&A run the past several years as it aims to use its existing customer relationships to bolster revenue. ![]() Unavailable in Free version, available in Standard and Plus versions Voice/video calls with up to 250 people in a meeting.ġ0 integrations limit in Free plan, 800+ integrations in paid plansįree plan: 2 GB/user and 10GB of shared storage Unlimited 1:1 voice and video calls in Free planĬonference calls for up to 15 participants in Paid plans You can try both paid plans for free for 30 daysġ0K messages in Free plan, unlimited in Standard and Plus plans Standard $6.67 user/month (billed annually) Here is a quick feature review of the two: Slack This has resulted in some significant share shift changes as Microsoft offers a competitive solution basically for free. The big fear with Slack is Microsoft Teams, which Microsoft ( MSFT) has been rolling into its 365 bundle. Despite these stock performance struggles, the business has performed generally pretty well with 35%+ YoY revenue growth and decent unit economics. Slack has been trailing in the public markets for some time and is still trading below IPO prices. I recommend playing the spread with the stock or short-dated calls. I believe a 15% haircut is baked into the deal not closing, and there is ample reason to believe that the deal will close. On the news, Slack soared 30% and is trading around $22 billion valuation. Rumors swirled that Salesforce ( CRM) is looking to buy Slack ( NYSE: WORK), and the deal can be announced as early as next week.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |