As a global leader in customer relationship management (CRM) software, Salesforce is reportedly in the final stages of negotiating a significant acquisition of Informatica, a reputable data management services provider.
According to anonymous sources, the acquisition discussions are confidential and an announcement could be forthcoming. However, the potential acquisition price is speculated to be lower than Informatica’s current share price of $38.48.
Note: Acquisition talks are often a strategic move to consolidate market share or expand service offerings.
This deal, if it goes through, would mark Salesforce’s biggest acquisition since it purchased Slack Technologies, a workplace messaging application, for a staggering $28 billion in 2020.
Following a nearly 43% surge in share prices this year, Informatica’s market valuation stands at approximately $11.35 billion.
Informatica turned private in 2015 when a consortium, including Permira and Canadian Pension Plan Investment Board (CPPIB), bought it for about $5.3 billion. Six years later, it went public again, with its shares listed on the New York Stock Exchange.
Salesforce has been an active player in the acquisition market. Aside from Slack, it also bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion in 2019. However, it faced scrutiny from activist investors in 2023, leading to cost-cutting measures and increased share buybacks.
The tech sector has seen a flurry of high-profile deals recently, largely driven by the growing interest in artificial intelligence (AI). Notable deals include Synopsys’s $35 billion acquisition of Ansys and Hewlett Packard Enterprise’s $14 billion buyout of Juniper Networks.
The technology sector led in mergers and acquisitions during the first quarter, with a year-on-year increase of more than 42% to about $154 billion, according to Dealogic.
