Software giant Salesforce in advanced talks to buy Informatica

Apr13,2024



customer relationship software manufacturer sales force Advanced talks are underway for acquisition information Science A person familiar with the matter told Reuters on Friday, the latest sign of increased deal-making. technology sector,
A deal An announcement could be made soon, said the source, who requested anonymity because the discussions are confidential.
The price being discussed is lower than Informatica's current share price of $38.48, according to the Wall Street Journal, which first reported talks between Salesforce and Informatica.
Salesforce and Informatica did not immediately respond to requests for comment.
private equity firm permiraThe Canadian Pension Plan Investment Board (CPPIB), which holds a controlling stake of more than 75% in Informatica, declined to comment. CPPIB Could not be reached for comment.
Founded in 1993, Informatica provides subscription-based data management services on the cloud and also helps automate tasks for more than 5,000 active customers.
Based in Redwood City, California, its clients include Unilever and Deloitte, according to its website.
Informatica shares have risen about 43% so far this year, valuing the company at about $11.35 billion.
The company was privatized in 2015 for approximately $5.3 billion by a consortium that included Permira and CPPIB.
Six years later, Permira and CPPIB took Informatica public again and its shares were listed on the New York Stock Exchange.
If the deal goes through, it would be the biggest deal for Salesforce since it acquired workplace messaging app Slack Technologies for about $28 billion in 2020.
Salesforce's dealmaking strategy came under scrutiny in early 2023, when activist investors including ValueAct Capital and Elliott Management questioned the company's strategy and pressured management for changes.
In response, Salesforce implemented cost cuts and increased share buybacks. It also disbanded its M&A board committee.
Salesforce has been a prolific acquirer. In 2019, it bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
As part of the current enthusiasm for the spread of artificial intelligence in the technology sector, several large deals have been signed.
In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. Hewlett Packard Enterprise in January struck a deal to buy networking gear maker Juniper Networks for $14 billion.
Technology had the largest share of mergers and acquisitions during the first quarter, increasing more than 42% year-over-year to nearly $154 billion, according to Dealogic.



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