Salesforce, the leader in the CRM industry, is in advanced negotiations to acquire data-management software provider Informatica, a news report in The Wall Street Journal indicated.
The proposed deal’s financial terms indicate a price below Informatica’s current stock value of $38.48 per share, presenting a potential hurdle in finalizing the agreement.
Informatica, headquartered in Redwood City, California, specializes in cloud management services and boasts a market capitalization of approximately $11.35 billion.
Informatica has reported revenues of $1.60 billion (up 6 percent) with operating income of $33.6 million in 2023. Informatica says it processed 86 trillion cloud transactions per month for the quarter ended December 2023, as compared to 53.0 trillion cloud transactions per month in the same quarter last year, an increase of 62 percent.
This potential acquisition comes against the backdrop of activist investor pressure on Salesforce in early 2023, urging strategic changes such as cost reductions, increased share repurchases, and a restructuring of the mergers and acquisitions approach, Reuters news report said.
Salesforce has historically demonstrated a strong appetite for mergers and acquisitions. In a recent move, the San Francisco-based CRM giant spearheaded a $106 million funding round for Together AI, a company supported by Nvidia.
Notably, Salesforce’s largest acquisition to date occurred in 2020 when it acquired workplace messaging platform Slack Technologies in a monumental $27.7 billion deal, solidifying its position as a key player in the cloud computing business.
InfotechLead.com News Desk
