Salesforce edges closer to US$8b deal for Informatica: WSJ
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The news: Salesforce is nearing a USD8 billion ($12.4 billion) deal to acquire data-management software firm Informatica, according to sources cited by the Wall Street Journal.
The numbers: The WSJ said that Salesforce is expected to pay USD25 per share for the company, that is set to be officially announced later on Tuesday.
Informatica shares surged 17% to USD22.55 on Friday after reports emerged that the deal had been revived. Salesforce has a current market capitalisation of over USD260 billion.
The context: The two companies reportedly first discussed the deal in 2024, which would have valued Informatica in the realm of USD10 billion, but the talks stalled after the parties couldn't agree on terms.
Informatica, a cloud-driven data management company for corporates was taken private by Permira and the Canadian Pension Plan Investment Board (CPPIB) in 2015 in a USD5.3 billion deal, before going public once more in 2021.
Permira is the biggest shareholder in Informatica with around one third of shares, while the CPPIB holds around 25% of the firms shares.
The deal would be the largest in recent history for Salesforce, which prior to 2023 fed its strong appetite for M&A. Salesforce bought MuleSoft for around USD6.5 billion in 2018, Tableau Software for over USD15 billion in 2019 and Slack Technologies for USD28 billion in 2023. After the Slack purchase, Salesforce eased off M&A activity as activists including Elliott Investment Management and Starboard Value began to circle.
In March, Salesforce unveiled plans to spend USD2.5 billion in Australia over the next five years on AI, workforce development and sustainability initiatives. Salesforce’s Australian boss Frank Fillmann said the company hopes to provide a breakthrough for the country’s low productivity and tight labour market.
The sources: WSJ, Capital Brief
