Informatica to Be Acquired by Salesforce in $8 Billion Strategic Move

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In a landmark move set to reshape the cloud software landscape, Salesforce Inc. has announced its agreement to acquire data management giant Informatica Inc. for approximately $8 billion. The deal comes just over a year after previous acquisition talks between the two tech firms fell apart.

Under the terms disclosed on Tuesday, Informatica shareholders will receive $25 per share in cash. Salesforce expects to complete the acquisition in the early part of its fiscal year 2027, with funding drawn from a combination of cash reserves and new debt.

Strategic Expansion into Data Management and AI

This acquisition marks one of Salesforce’s largest deals to date and signals a strong push by CEO Marc Benioff to bolster the company’s AI and data cloud capabilities. Informatica, headquartered in Redwood City, California, is a leading provider of cloud data management solutions and has long been viewed as a prime takeover target. The move is expected to further enhance Salesforce’s artificial intelligence initiatives by integrating Informatica’s robust data infrastructure.

“Our acquisition strategy is methodical, patient, and decisive,” said Robin Washington, Salesforce’s president and chief operating and financial officer. “This proposed acquisition will be a key enabler for Salesforce’s next phase of AI-driven growth — and we will move quickly to integrate their capabilities.”

Bloomberg Intelligence analyst Sunil Rajgopal commented that the acquisition underscores Salesforce’s intent to invest heavily in data infrastructure, noting the success of its data cloud product. However, he also warned that the overlap between Informatica and Salesforce’s existing MuleSoft unit might draw regulatory attention.

Market Reaction and Financial Overview

Following the announcement, Informatica’s shares rose by 5.8% in premarket trading, while Salesforce’s stock saw a 1% uptick. Despite the recent surge, Informatica’s stock has declined 13% so far this year, placing its market valuation at $6.8 billion prior to the deal. The company currently holds around $1.9 billion in debt, according to Bloomberg data.

Informatica was previously taken private in 2015 in a $5.3 billion transaction by private equity firm Permira and the Canada Pension Plan Investment Board (CPPIB). The company returned to public markets in 2021, with Permira and CPPIB remaining the largest shareholders—holding approximately 32% and 25% of the company’s shares, respectively.

Deal Advisors and Legal Counsel

JPMorgan Securities LLC served as Salesforce’s financial advisor, with legal counsel provided by Wachtell, Lipton, Rosen & Katz and Morrison & Foerster LLP. Informatica was advised by Goldman Sachs & Co. LLC, while Latham & Watkins LLP and Fenwick & West LLP handled legal matters.

As the acquisition progresses, industry watchers will be closely monitoring for any regulatory challenges and how Salesforce integrates Informatica’s capabilities to enhance its competitive edge in the growing AI and cloud computing markets.

Sources By Agencies