In the business and entrepreneurship world, acquisitions are a business exit strategy and one that can be very beneficial to both the buyer and seller.
On Tuesday, cloud computing giant Salesforce announced that it will acquire workplace chat app Slack for $27.7 billion in their biggest acquisition yet. The sale, which will be done in both cash and stock is expected to be closed in mid-2021.
After the acquisition, Slack CEO Stewart Butterfield will continue to lead Slack as an operating unit. However, Salesforce plans to merge Slack with its Salesforce Customer 360 software, which collects a company’s customer information in one place. Slack will be its new interface.
Here’s what the acquisition will mean for both companies as well as fashion entrepreneurs.
What is Slack?
Slack is a workplace collaboration software that is used by companies and other groups as a communication tool between them members. The app, which can be used by both large enterprises and small businesses, is often used as an alternative to email.
Slack gives the option of chatting directly with people or making either private or public chat groups for teams and departments. The app, which also allows for video calls, can be used with other popular workplace tools like Google Docs and Trello.
How Can Slack be Used by Fashion Entrepreneurs?
Fashion entrepreneurs can use Slack to communicate with business partners, other fashion entrepreneurs, and their employees. They can also use the app to give and get training and business opportunities and to have virtual video meetings with clients.
Some other great features that fashion entrepreneurs might find useful in the Slack app is the ability to set channels and reminders and deadlines for projects. Channels are groups set up by team members to discuss specific topics.
With channels, ideas, files and documents can be shared freely among team members. These channels help creative directors, pattern makers, tailors, and so on collaborate on projects for clients.
With the reminder and deadlines feature, fashion entrepreneurs can set deadlines for various client projects and work to make them happen on time.
What is Salesforce?
Salesforce is an enterprise software company that focuses majorly on cloud-based programs for managing marketing and sales. The 21-year-old company has grown tremendously over the years is big on collaborations and workflows.
Owing to its customer relationship management software that helps businesses manage sales online, Salesforce has become of the largest software companies in the world.
What are the Implications of this Acquisition?
For Slack and Salesforce;
This purchase gives both Slack and Salesforce a major edge over one of their major rivals, Microsoft Teams. This will mean getting more customers and a larger market share in the virtual work and enterprise software space.
“Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” said Salesforce CEO Marc Benioff. “This is a match made in heaven. 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. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
For Fashion Entrepreneurs;
This deal, which will merge two great software, will offer new and improved features to fashion entrepreneurs. This means that they will be able to do much more than they were able to do before.
It will also offer better user experience for fashion entrepreneurs who use Slack for business operations.
“Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive,” said Slack CEO Stewart Butterfield. “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. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
As the acquisition goes on, we can only wait to see what will happen.