Reports surfaced last week that Salesforce was exploring the purchase of workplace communication application Slack. Now, the software giant has confirmed it will purchase Slack for $27.7 billion using a mix of cash and stock.
In a press release, Salesforce described plans to “deeply integrate” Slack into its current offerings, making the app the means to communicate and collaborate about customer information. They also intend to integrate the Slack Connect function, allowing a similar degree of communication with partners outside of the organization.
Following the announcement, Salesforce CEO Marc Benioff released revenue guidance for his company extending to 2022, projecting sales of $25.55 billion by that time. That would imply strong growth from the $17.1 billion figure the company posted this year.
While that’s an aggressive target, Benioff made clear that he’s not stopping there. He went on to say he sees the Slack acquisition as a key component on the road to generating $50 billion in revenue per year.