Salesforce in Advanced Talks to Buy Informatica

Salesforce in Advanced Talks to Buy Informatica

If completed, Salesforce’s deal for the data-management software firm would be among its largest. Salesforce is in advanced talks to acquire business software maker Informatica.

The source, who asked not to be named because the discussions are confidential, said a deal could be announced soon.

The deal discussed below is Informatica’s current stock price of $38.48.

Informatica is based in Redwood City, California, and has a market capitalization of about $11.35 billion. Its customers include Unilever and Deloitte.

Founded in 1993, Informatica offers subscription-based cloud data management services and helps automate tasks for more than 5,000 active customers.

Informatica was taken private in 2015 for about $5.3 billion by a consortium that included private equity firm Permira Advisers Ltd and Canada Pension Plan Investment Board.

Six years later, it was listed again on the NYSE. Permira and CPPIB currently have a controlling stake of over 75% in Informatica.

In early 2023, Salesforce became a target for activist investors to push for changes, resulting in cost cuts and increased share buybacks. As part of a series of steps taken since activist investors, including ValueAct Capital and Elliott Management, acquired stakes in Salesforce, the company had disbanded its M&A board committee.

Some activists had also pushed the company to increase growth and margins, buy back more shares, and raise concerns about its acquisitions.

Salesforce acquired workplace messaging app Slack Technologies in 2020 in a $27.7 billion deal, betting on an extended run for remote working.

The San Francisco-based cloud computing pioneer has historically been keen on deals and investments. Slack was Salesforce’s largest acquisition. In 2019, it bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.