WORK - Is Salesforce Stock a Buy After Its Slack Acquisition?
Salesforce (NYSE: CRM) agreed to buy the enterprise communications company Slack (NYSE: WORK) for about $27.7 billion at the beginning of December. The cloud services company will pay $26.79 in cash and 0.0776 shares of its own stock for each share of Slack, and it expects the deal to close in the second quarter of fiscal 2022 (between next May and July).
Salesforce ended last quarter with $3.7 billion in cash and equivalents, $5.8 billion in marketable securities, and $2.7 billion in long-term debt. It plans to fund the deal with a mix of cash and new debt, and it recently secured a $10 billion loan from three major banks to close the deal.
Salesforce CEO Marc Benioff called the deal a "match made in heaven" that will "shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world."
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Is Salesforce Stock a Buy After Its Slack Acquisition?