Cloud-based software giant Salesforce has agreed to acquire Slack, the work communication platform, in a bumper deal worth around $27.7bn (£20.3bn), bringing the pair together in their efforts to challenge Microsoft. The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2022.

Should the deal receive the necessary regulatory and stockholder approval, Slack will be ‘deeply integrated’ into every Salesforce Cloud and become the new interface for Salesforce Customer 360. As an operating unit of Salesforce, Slack will continue to be led by CEO Stewart Butterfield.

Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share.

“Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” said Marc Benioff, Chair and CEO, Salesforce. “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.”

“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 Butterfield. “As software plays a more and more critical role in the performance of every organisation, 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.”