The deal is the biggest bet among a recent spate of acquisitions made by tech companies to capitalize on the shift to remote work. If completed, the acquisition will end Slack’s brief run as an independent publicly traded company - it went public in mid-2019 - and cap an acquisitive streak by Salesforce with its largest deal since it was founded 21 years ago. Slack is a channel-based messaging platform.SAN FRANCISCO - Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in a wave of deals as the coronavirus pandemic boosts demand for tools that enable people to work remotely. San Francisco-based is a cloud computing provider of software-as-a-service products.
The 2028 notes changed hands at option-adjusted spreads of 56-58 basis points this week, or little changed on the acquisition news, according to MarketAxess. last tapped the bond markets in April 2018, when it printed $2.5 billion of senior notes backing its $6.5 billion acquisition of enterprise software concern MuleSoft. It added that the company's nearly $9.5 billion cash balance should decline upon close of the transaction, based on its estimated $7 billion cash outflow for the acquisition, "but should quickly be replenished through strong free operating cash flow (FOCF) generation, which we expect will exceed $4 billion in fiscal 2021 and fiscal 2022." "We believe the transaction will raise 's adjusted leverage from zero to the 1x area upon close, well below our downgrade trigger of 2x," Ratings stated. 1 said its A rating and stable outlook on were unchanged following the M&A disclosure. The company expects to fund the cash portion of the transaction with a combination of new debt and cash on its balance sheet. Morgan for a $10 billion senior unsecured, 364-day bridge loan facility in connection with its planned acquisition of Slack Technologies, which is pegged at $27.7 billion and expected to close in the second quarter of 's fiscal year 2022. disclosed that it has obtained a commitment from Citi, Bank of America and J.P.
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