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Salesforce Rises After Closing Purchase of Slack

Customer-relations-management-software titan Salesforce closed its purchase of business-communications platform Slack. The shares are higher.
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Shares of Salesforce  (CRM) - Get Report ticked higher after the customer-relations-management-software titan closed its purchase of business-communications platform Slack.

Salesforce stock recently traded at $241.65, up 0.6%, compared with the the S&P 500’s 0.7% gain.

On Monday, the Justice Department had dropped an antitrust probe into the $27.7 billion takeover by Salesforce.

The DOJ's antitrust division opened a "second request" review into the deal earlier this year, as the Biden administration vowed to take a closer look at big tech mergers.

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Last month, Slack reported fiscal-first-quarter revenue rose 36% from a year earlier to $273.4 million, with billings rising 35% to $278.5 million. Paid customer growth, the company said, was up 39% to 169,000.

Salesforce, which published quarterly earnings on May 27, boosted its full-year outlook to an adjusted profit between $3.79 and $3.81 a share and forecast revenue in the range of $25.9 billion to $26 billion.

"Considering the deal price and the presence of a robust competitor in the collaboration market in the form of Microsoft,  (MSFT) - Get Report we expect investors to be keyed in on the early success Salesforce has in driving Slack penetration within its existing customer accounts," said Stifel analyst Tom Roderick. He carries a buy rating with a $295 price target for Salesforce stock.

TheStreet.com Founder Jim Cramer said Monday that the deal enables Salesforce to attack Microsoft  (MSFT) - Get Report.

Salesforce is a holding in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Jim Cramer buys or sells CRM? Learn more now.