Dec. 1 (UPI) -- Cloud computing company Salesforce acquired workplace chat app Slack in an agreement announced by the two companies Tuesday.
Salesforce agreed to pay $27.7 billion for Slack, with Slack shareholders receiving $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share. The valuation was based on the closing price of Salesforce's common stock on Monday.
Marc Benioff, chair and CEO of Salesforce, praised Slack CEO and co-founder Stewart Butterfield for building "one of the most beloved platforms in enterprise software history."
"This is a match made in heaven," he said. "Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world."
Butterfield similarly said the two companies see a "massive" opportunity in working together.
"As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility and ultimately a greater degree of alignment and organizational agility."
In the announcement, Salesforce said that Slack Connect will become the new interface for Salesforce Customer 360 and will be "deeply integrated" into every Salesforce Cloud.
"Slack will transform how people communicate, collaborate and take action on customer information across Salesforce as well as information from all of their business apps and systems to be more productive, make smarter, faster decisions and create connected customer experiences," the company said.