Salesforce in advanced talks to acquire Informatica: Report

Salesforce’s Informatica acquisition: Salesforce is currently engaged in advanced discussions to acquire Informatica, a business software provider, according to a source familiar with the matter. The potential deal, which could be announced imminently, is reportedly being negotiated at a price below Informatica's current stock value of $38.48.

Informatica, headquartered in Redwood City, California, boasts a clientele that includes prominent companies such as Unilever and Deloitte, with a market capitalisation of approximately $11.35 billion. Established in 1993, Informatica offers subscription-based data management services delivered via the cloud, catering to over 5,000 active customers.

The company was taken private in 2015 for approximately $5.3 billion by a consortium led by private equity firm Permira Advisers Ltd and Canada Pension Plan Investment Board. Following its re-listing on the NYSE six years later, Permira and CPPIB collectively hold a controlling stake of over 75 per cent in Informatica.

The move by Salesforce to pursue Informatica comes amid shifts within the organisation prompted by activist investors, including ValueAct Capital and Elliott Management. These investors have advocated for changes to enhance growth, margins, and shareholder returns. Salesforce had recently dissolved its M&A board committee as part of broader steps aimed at addressing concerns raised by activists.

Notably, Salesforce's acquisition strategy has been notable in recent years, with significant deals such as the $27.7 billion purchase of workplace messaging app Slack Technologies in 2020 and the acquisition of data analytics platform Tableau Software for $15.7 billion in 2019. This potential acquisition of Informatica underscores Salesforce's continued interest in strategic investments to drive growth and innovation.

(With Reuters inputs)