Salesforce’s $8 billion Informatica deal aims to bolster data strategy – financialexpress.com
Salesforce announced on Tuesday that it will acquire data management firm Informatica in a deal valued at approximately $8 billion, marking its largest acquisition since buying Slack Technologies in 2021.
The move signals Salesforce’s return to large-scale mergers and acquisitions after a period of restraint, prompted in part by pressure from activist investors seeking improved profitability. Talks between Salesforce and Informatica, which had been shelved last year due to disagreements over terms, resumed in April amid renewed interest in Informatica from multiple potential buyers, including private equity firms.
People familiar with the matter said five parties expressed interest in Informatica, including Thoma Bravo and Cloud Software Group. Thoma Bravo declined to comment, and Cloud Software Group did not respond to requests for comment.
Salesforce is offering $25 per share for Informatica, representing a roughly 30% premium to Informatica’s closing stock price on May 22, the day before news of the resumed talks emerged. Informatica shares rose 5.8% to $23.86 following the announcement, while Salesforce stock gained 1.78%.
The deal is structured to be completed through a combination of cash and newly issued debt. It is expected to close in early Salesforce’s next fiscal year, beginning in February 2025. According to the company, the acquisition will begin contributing to its operating margin from the second year after closing.
Salesforce CEO Marc Benioff said the acquisition would enhance the company’s ability to manage and utilise business data, an increasingly important function as the company integrates generative AI across its product suite. Salesforce currently offers AI-powered agents for tasks such as recruiting and customer service, and has reported over 1,000 paid deals for its Agentforce platform.
Analysts at Scotiabank noted that the deal may help Salesforce better compete with larger software providers who now commonly bundle data management tools as part of broader enterprise software offerings.
Salesforce has a history of large acquisitions, including its $15.7 billion purchase of Tableau Software in 2019 and its $27.7 billion acquisition of Slack in 2021. However, those moves came under scrutiny in 2023, when activist investors such as ValueAct Capital and Elliott Management urged the company to focus on improving its margins and operational efficiency.
The MMRDA has rejected L&T’s bids for two major infrastructure projects in Mumbai on technical grounds. The Supreme Court has ordered them to reconsider or face a potential halt in the process. L&T has raised concerns about transparency and the disqualification process, claiming their bids were significantly lower than the chosen bidder
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
The move signals Salesforce’s return to large-scale mergers and acquisitions after a period of restraint, prompted in part by pressure from activist investors seeking improved profitability. Talks between Salesforce and Informatica, which had been shelved last year due to disagreements over terms, resumed in April amid renewed interest in Informatica from multiple potential buyers, including private equity firms.
People familiar with the matter said five parties expressed interest in Informatica, including Thoma Bravo and Cloud Software Group. Thoma Bravo declined to comment, and Cloud Software Group did not respond to requests for comment.
Salesforce is offering $25 per share for Informatica, representing a roughly 30% premium to Informatica’s closing stock price on May 22, the day before news of the resumed talks emerged. Informatica shares rose 5.8% to $23.86 following the announcement, while Salesforce stock gained 1.78%.
The deal is structured to be completed through a combination of cash and newly issued debt. It is expected to close in early Salesforce’s next fiscal year, beginning in February 2025. According to the company, the acquisition will begin contributing to its operating margin from the second year after closing.
Salesforce CEO Marc Benioff said the acquisition would enhance the company’s ability to manage and utilise business data, an increasingly important function as the company integrates generative AI across its product suite. Salesforce currently offers AI-powered agents for tasks such as recruiting and customer service, and has reported over 1,000 paid deals for its Agentforce platform.
Analysts at Scotiabank noted that the deal may help Salesforce better compete with larger software providers who now commonly bundle data management tools as part of broader enterprise software offerings.
Salesforce has a history of large acquisitions, including its $15.7 billion purchase of Tableau Software in 2019 and its $27.7 billion acquisition of Slack in 2021. However, those moves came under scrutiny in 2023, when activist investors such as ValueAct Capital and Elliott Management urged the company to focus on improving its margins and operational efficiency.
The MMRDA has rejected L&T’s bids for two major infrastructure projects in Mumbai on technical grounds. The Supreme Court has ordered them to reconsider or face a potential halt in the process. L&T has raised concerns about transparency and the disqualification process, claiming their bids were significantly lower than the chosen bidder
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
