Salesforce announced on Tuesday that it will acquire data management firm Informatica in a deal valued at approximately $8 billion, marking its largest acquisition since buying Slack Technologies in 2021.
The move signals Salesforce’s return to large-scale mergers and acquisitions after a period of restraint, prompted in part by pressure from activist investors seeking improved profitability. Talks between Salesforce and Informatica, which had been shelved last year due to disagreements over terms, resumed in April amid renewed interest in Informatica from multiple potential buyers, including private equity firms.
People familiar with the matter said five parties expressed interest in Informatica, including Thoma Bravo and Cloud Software Group. Thoma Bravo declined to comment, and Cloud Software Group did not respond to requests for comment.
Salesforce is offering $25 per share for Informatica, representing a roughly 30% premium to Informatica’s closing stock price on May 22, the day before news of the resumed talks emerged. Informatica shares rose 5.8% to $23.86 following the announcement, while Salesforce stock gained 1.78%.
The deal is structured to be completed through a combination of cash and newly issued debt. It is expected to close in early Salesforce’s next fiscal year, beginning in February 2025. According to the company, the acquisition will begin contributing to its operating margin from the second year after closing.
Salesforce CEO Marc Benioff said the acquisition would enhance the company’s ability to manage and utilise business data, an increasingly important function as the company integrates generative AI across its product suite. Salesforce currently offers AI-powered agents for tasks such as recruiting and customer service, and has reported over 1,000 paid deals for its Agentforce platform.
Analysts at Scotiabank noted that the deal may help Salesforce better compete with larger software providers who now commonly bundle data management tools as part of broader enterprise software offerings.
Salesforce has a history of large acquisitions, including its $15.7 billion purchase of Tableau Software in 2019 and its $27.7 billion acquisition of Slack in 2021. However, those moves came under scrutiny in 2023, when activist investors such as ValueAct Capital and Elliott Management urged the company to focus on improving its margins and operational efficiency.