American cloud-based software company Salesforce (CRM) has concluded its $27.7 billion acquisition of business communication platform provider Slack Technologies (WORK). With this buyout, Slack’s software will be integrated into Salesforce’s cloud-based office suits.
The deal is expected to expand Salesforce’s team collaboration software capabilities, and add considerable value to its global customer base. Notably, Slack reported 169,000 paid customers during the first quarter of Fiscal Year 2022. (See Salesforce’s stock chart on TipRanks)
The Co-founder and CEO of Slack, Stewart Butterfield, will continue to head the company’s operations. He said, “Salesforce and Slack are uniquely positioned to lead this historic shift to a digital-first world. I could not be more excited for what’s to come.”
On July 15, Stifel Nicolaus analyst Parker Lane initiated coverage on Salesforce with a Buy rating and a price target of $295. The price target implies 21.9% upside potential.
Lane said, “Building on the widespread adoption of its CRM solution across nearly all industries, Salesforce has positioned itself as the leading software player in all areas of the customer experience journey (Sales, Marketing, Service, E-Commerce, Integration, Analytics, and Collaboration). On the path to $50bn in FY26 total revenue, we believe components of the business, like Field Service Lightning, MuleSoft, Tableau, and Slack will play a much larger role in the company’s growth story, with Salesforce’s strategic account relationships and powerful go-to-market engine fueling up/cross-sell activity.”
Consensus among analysts is a Strong Buy based on 23 Buys and 5 Holds. The average Salesforce price target of $278.89 implies 15.2% upside potential.