Slack Technologies Inc (NYSE:WORK) has inked a definitive agreement to be acquired by customer relationship management behemoth Salesforce, Inc. (NYSE:CRM).
The transaction is likely to receive the required stockholder and regulatory approvals, and another offer is unlikely to emerge, according to Morgan Stanley.
The Slack Technologies Analyst: Keith Weiss upgraded Slack Technologies from Underweight to Equal Weight and raised the price target from $27 to $44.
The Slack Technologies Thesis: The cash-and-stock deal implies the company’s shares are worth $44.47 each, representing an equity value of more than $27 billion and enterprise value of around $26 billion, Weiss said in the upgrade note.
Management expects the deal to close in the quarter ending July 31, 2021.
“Given the premium on a growth adjusted basis, we see this as a full valuation for Slack, and therefore don't expect anyone to go over the top, especially considering the limited potential buyers given a deal this large,” the analyst said.
Earlier this month, Slack Technologies released strong quarterly results, with revenues, billings and margins ahead of the consensus estimates, he said.
WORK Price Action: Shares of Slack Technologies were trading down 0.59% at $42.78 at last check Wednesday.
Photo courtesy of Slack.
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