Key Points:
- Salesforce is in advanced talks about acquiring Informatica. The potential acquisition comes amid increased deal-making activity in the technology sector.
- Informatica’s shares have surged approximately 43% this year, contributing to its current valuation of approximately $11.35 billion.
- Salesforce’s potential acquisition of Informatica would mark its largest deal since acquiring Slack Technologies for nearly $28 billion in 2020.
- The technology sector saw several large-scale deals in the first quarter, surging over 42% year-on-year to approximately $154 billion.
Salesforce, the customer relations software giant, is reportedly in advanced discussions to acquire Informatica, a data management services provider, in a move indicative of increased deal-making within the technology industry. According to a source familiar with the matter, an announcement regarding the potential acquisition could be imminent. However, the discussed price is reportedly below Informatica’s current share price of $38.48.
Informatica, founded in 1993, offers cloud-based data management services and automation solutions to over 5,000 active customers, including prominent names like Unilever and Deloitte. The company’s shares have experienced a significant surge, rising nearly 43% this year and valuing the company at approximately $11.35 billion.
Informatica was taken private in 2015, Permira and the Canadian Pension Plan Investment Board (CPPIB) took the company public again in 2021, listing its shares on the New York Stock Exchange. Permira and CPPIB hold a controlling stake of over 75% in Informatica.
Salesforce’s potential acquisition of Informatica would mark its largest deal since acquiring workplace messaging app Slack Technologies for nearly $28 billion in 2020. Salesforce, known for its aggressive acquisition strategy, faced scrutiny from activist investors in early 2023, leading to strategic changes, including cost-cutting measures and increased share buybacks.
The technology sector has witnessed a flurry of large-scale deals amid the enthusiasm for artificial intelligence. In January, Synopsys agreed to acquire Ansys for about $35 billion, while Hewlett Packard Enterprise struck a $14 billion deal to acquire Juniper Networks. Technology mergers and acquisitions dominated the first quarter, surging over 42% year-on-year to approximately $154 billion, according to Dealogic.
Salesforce’s potential acquisition of Informatica underscores its commitment to expanding its portfolio and strengthening its position in the competitive tech landscape. The outcome of the negotiations could have significant implications for both companies and the broader industry.
