The deal is valued at $27.7 billion.

Customer relationship management (CRM) company Salesforce announced this week that it has agreed to buy Slack Technologies Inc., a team communications platform popular with enterprises.

Terms of the agreement call for Salesforce to pay $26.79 in cash and 0.0776 in common stock for each share of Slack, representing a value of about $27.7 billion. Slack will become an operating unit of Salesforce and will continue to be led by Co-Founder and CEO Stewart Butterfield.

Following the merger, Slack will become the new interface for Salesforce Customer 360. Slack's open platform integrates with more than 2,400 applications that people use to collaborate and communicate among employees, external partners, vendors, and customers. The companies said the combination of Salesforce and Slack will create the largest open ecosystem of apps and workflows available and empower millions of developers to build the next generation of apps with clicks instead of codes.

Butterfield said the opportunity for the combined company is massive and that he believes it is the "most strategic combination in the history of software."

"As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility," said Butterfield.

Both companies' boards have already approved the proposed agreement. The transaction is expected to close during the second quarter of Salesforce's 2022 fiscal year and is subject to shareholder approval. 

Salesforce was founded in 1999 to help companies leverage technology like cloud, mobile, social, blockchain, voice, and artificial intelligence to connect to their customers. Slack was founded 10 years later in 2009 and has grown its user base to more than 10 million active daily users.