April 13 (Reuters) – Customer relations software maker Salesforce (CRM.N)New Tab, opens new tab is in advanced talks to acquire Informatica (INFA.N)New Tab, opens new tab, a person familiar with the matter told Reuters on Friday, in the latest sign of increased deal-making in the technology sector.
The price being discussed is below Informatica’s current share price of $38.48, according to the Wall Street Journal, which first reported the talks between Salesforce and Informatica.
Salesforce and Informatica did not immediately respond to requests for comment.
Private equity firm Permira, which along with the Canadian Pension Plan Investment Board (CPPIB) holds a controlling stake of over 75% in Informatica, declined to comment.
Six years later, Permira and CPPIB took Informatica public again and its shares were listed on the New York Stock Exchange.
In 2019, it bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
In January, design software company Synopsys (SNPS.O)New Tab, opens new tab agreed to buy smaller rival Ansys for about $35 billion.
Hewlett Packard Enterprise (HPE.N)New Tab, opens new tab struck a deal in January to buy networking gear maker Juniper Networks (JNPR.N)New Tab, opens new tab for $14 billion.
April 13 (Reuters) – Salesforce (CRM) is a maker of customer relations software. N)New Tab: The acquisition of Informatica (INFA) is in advanced discussions. A source familiar with the situation told Reuters on Friday that there is a new tab that opens, which is the most recent indication of a rise in deal-making in the technology industry.
The anonymous source claimed that an announcement regarding a deal might come soon because the talks are private.
The Wall Street Journal, which broke the story of Salesforce and Informatica’s discussions first, claims that the price under discussion is less than Informatica’s current share price of $38.48.
When contacted for comment, Informatica and Salesforce did not immediately reply.
Refusing to comment was the private equity firm Permira, which jointly owns a majority stake of more than 75% in Informatica with the Canadian Pension Plan Investment Board (CPPIB). It was not possible to get in touch with CPPIB for comment.
According to its website, Unilever and Deloitte are among its clients. It is based in Redwood City, California.
With a nearly 43 percent increase in share price this year, Informatica is now valued at approximately $11.35 billion.
In 2015, a group led by Permira and CPPIB acquired the company for approximately $5.03 billion in cash.
After six years, Informatica went back on the market with the help of Permira and CPPIB, and its shares were listed on the New York Stock Exchange.
If the deal closes, it will be Salesforce’s largest since it paid nearly $28 billion to acquire Slack Technologies, a workplace messaging app, in 2020.
Early in 2023, activist investors, such as ValueAct Capital and Elliott Management, questioned Salesforce’s dealmaking approach and pressed the company’s management to make adjustments.
Salesforce responded by increasing share buybacks and implementing cost-cutting measures. Additionally, it dissolved the MandA board committee.
Salesforce has made a lot of acquisitions. With an all-stock purchase price of $15.77 billion in 2019, it acquired the data analytics platform Tableau Software.
Numerous significant agreements have been signed as a result of the current artificial intelligence fervor that is sweeping the technology industry.
Design software provider Synopsys (SNPS) announced in January. O)New Tab, launches New Tab, agreed to pay roughly $35 billion to acquire smaller competitor Ansys. Enterprise Hewlett Packard (HPE). In January, N)New Tab, opens new tab, reached an agreement to acquire Juniper Networks (JNPR), a manufacturer of networking equipment. N)New Tab: $14 billion is opened in a new tab.
According to Dealogic, the technology sector jumped more than 42% year over year to approximately $154 billion, accounting for the largest share of mergers and acquisitions during the first quarter.
In Bengaluru, Urvi Dugar, Utkarsh Shetti, and Mrinmay Dey reported; Stephen Coates and Barbara Lewis edited.
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Anirban Sen is the U.S. Editor-in-Charge. S. M&A at Reuters, where he oversees the largest deal coverage in New York. Anirban began his career in 2009 with Reuters in Bangalore and left the company in 2013 to work as a technology deals reporter for a number of prominent Indian business news publications, such as The Economic Times and Mint. Returning to Reuters in 2019, Anirban oversaw a group of reporters covering investment banking and venture capital as Editor in Charge of Finance. Anirban graduated with a degree in history from Jadavpur University and a postgraduate journalism diploma from the Indian Institute of Journalism & New Media.
