Salesforce Reopens Talks to Acquire Informatica

Salesforce has resumed negotiations to acquire Informatica, according to sources familiar with the matter cited by Bloomberg. A similar deal had fallen through last year.

Cloud Software Group, born from the merger between Citrix and Tibco, is also in the running to acquire the data-management software maker, according to the press agency. The news of the negotiations sent Informatica’s stock sharply higher, valuing the company at around $6.8 billion.

Such an acquisition would be one of the largest in Salesforce’s history. It could be strategic given the intensifying competition in the AI-powered database market, notes Sunil Rajgopal, an analyst at Bloomberg Intelligence, in a note released on Friday. However, the overlap between Informatica and Salesforce’s MuleSoft division, acquired in 2018, could attract regulatory scrutiny, the analyst warns.

Informatica was acquired in 2015 by Permira and the Canada Pension Plan Investment Board (CPPIB) in a $5.3 billion deal. The two funds subsequently took the company public again in 2021.

Permira remains the main shareholder of the company with close to 32% of the shares, according to Bloomberg’s aggregated data, while CPPIB holds about 25% of the equity. This ownership structure could facilitate the ongoing negotiations, as private equity funds are typically inclined to divest their stakes when the financial terms are attractive.

According to Bloomberg sources, an agreement could be announced as early as next week if the negotiations succeed. However, no final decision has been made, and talks could still fail or see the emergence of another potential buyer.