Salesforce, a customer relations software maker, is in advanced talks to acquire Informatica, a provider of data management services, in a deal that could be announced soon. The price being discussed is below Informatica’s current share price of $38.48. Founded in 1993, Informatica offers subscription-based data management services over the cloud to over 5,000 active customers, including companies like Unilever and Deloitte. Informatica’s shares have risen nearly 43% so far this year, valuing the company at about $11.35 billion. The company was taken private in 2015 for about $5.3 billion by Permira and CPPIB, and six years later, it went public again.
Permira and CPPIB, who hold a controlling stake of over 75% in Informatica, declined to comment on the potential acquisition by Salesforce. Salesforce has been a prolific acquirer in recent years, with the potential deal with Informatica being the biggest since it acquired Slack Technologies in 2020 for nearly $28 billion. The company’s dealmaking strategy faced scrutiny in 2023 when activist investors questioned its strategy. In response, Salesforce implemented cost-cutting measures, increased share buybacks, and disbanded its M&A board committee. In 2019, Salesforce acquired data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
The technology sector has been experiencing increased deal-making activity in recent years, with companies like Synopsys agreeing to acquire Ansys for about $35 billion and Hewlett Packard Enterprise striking a deal to buy Juniper Networks for $14 billion. Technology accounted for the largest share of mergers and acquisitions during the first quarter of the year, jumping more than 42% year-on-year to about $154 billion, according to Dealogic. The current enthusiasm for artificial intelligence has led to several large deals being signed in the sector, reflecting a trend of consolidation and expansion among technology companies.
If the deal between Salesforce and Informatica goes through, it would mark a significant acquisition for both companies. Salesforce, based in San Francisco, has been looking to expand its portfolio of services and offerings to better compete in the highly competitive technology sector. Informatica’s expertise in data management services over the cloud would complement Salesforce’s existing capabilities and potentially create new growth opportunities for both companies. This potential acquisition reflects the ongoing trend of consolidation and strategic partnerships in the technology industry, as companies seek to strengthen their positions and increase their market share.
The details of the potential deal between Salesforce and Informatica are still being discussed, and both companies have yet to provide any official comments on the matter. However, if the acquisition does go through, it would be a significant development in the technology industry and could have far-reaching implications for both companies and their customers. As technology continues to evolve and play an increasingly important role in the global economy, companies like Salesforce and Informatica are looking to innovate, expand, and stay competitive in a rapidly changing landscape. The potential acquisition of Informatica by Salesforce is just one example of the ongoing evolution and transformation happening in the technology sector.
