Slack introduced final week that it’s making ready for a public itemizing, capitalizing on big development within the six years since its launch. However might the favored office collaboration software program firm get acquired even earlier than it hits the inventory market?
“The truth that Slack is heading for a inventory market itemizing signifies that its buyers are in search of an exit/ROI alternative, so it’s not past the realms of chance that they’d take into account an acquisition as an alternative,” stated Angela Ashenden, principal analyst at CCS Perception.
“It will be very interesting as an acquisition, notably for an organization that desires to compete extra immediately/successfully with Microsoft within the digital office,” she stated.
“Slack is an effective acquisition goal for firms who wish to win the collaboration market,” stated Wayne Kurtzman, analysis director at IDC. “Successful that market is arguably profitable the long run digital office.”
It would not be the primary time like this occurred. There are a handful of examples in recent times of tech agency buy-outs going down previous to a public itemizing (which is typically known as a “dual-track” course of). Qualtrics was acquired final 12 months by SAP for $eight billion just a few days earlier than its IPO at a valuation of roughly $5 billion, whereas Cisco acquired AppDynamics for $three.7 billion in 2017 because the latter was prepping for a public itemizing. And an identical scenario occurred final 12 months with PayPal’s $2.2 billion acquisition of iZettle.
There may be little to recommend that Slack has deliberately undertaken a dual-track course of, the place it actively courts would-be suitors whereas heading for a public itemizing. However it’s no stranger to such hypothesis; the corporate’s success has led at occasions to tech chatter that Amazon, Google, Microsoft or even perhaps Apple would make appropriate consumers.