Jim Cramer: Salesforce Has 100% Upside After Buying Slack

Salesforce.com, inc.'s CRM $27.7-billion acquisition of Slack Technologies Inc WORK has received some pushback from analysts, but CNBC's Jim Cramer says the deal is "brilliant" and will double Salesforce's stock.

What Happened: Salesforce has shown impressive growth over the years to the point where it is one of the 30 stocks in the Dow Jones Industrial and boasts a valuation of more than $200 billion.

Due to the "law of large numbers," it would be very difficult for Salesforce to organically expand to become a $500-billion company, Cramer said.

Related Link: 6 Salesforce Analysts React To Slack Deal: 'Game-Changer Potential'

The problem for Salesforce is that it is a mostly "invisible" product that people don't interact with, the CNBC host said, adding that the only exceptions are data scientists and people who work in sales and live off the Salesforce platform.

This is where Slack's platform comes into play, as it's messaging platform that's "visible" and "something everyone can see and something everyone can buy," Cramer said.

Why It's Important: Salesforce's largest acquisition to date will create a stronger entity better positioned to compete with Microsoft Corporation MSFT, Cramer said. 

Salesforce sells enterprise customer relationship management software that rivals Microsoft, while Slack is a direct competitor to Microsoft Teams, he said. 

"If you follow the customer, you'll understand why Salesforce.com, which built a gigantic business by helping clients harness the power of the cloud, decided to shell out $27.7 billion for Slack Technologies in a deal that was widely criticized." 

What's Next: Salesforce expects the deal to close in its new fiscal year that starts in February.