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Informatica Denies Sale Amid $10 Billion Salesforce Interest

Informatica, stated it's not currently in talks for acquisition, following reports of Salesforce's interest in $10B deal
April 22, 2024

Informatica, a leading enterprise data management company, quashed rumors of a potential acquisition on Monday, stating that it is not currently in talks to be acquired. This comes after earlier reports hinted at Salesforce's interest in a deal valued at roughly $10 billion.

The news caused Informatica shares to slump more than 7%, while Salesforce shares saw a modest rise of around 1%. Had the acquisition gone through, it would have marked Salesforce's largest deal since its 2021 acquisition of Slack.

Negotiations between the two companies broke down reportedly due to a failure to agree on terms, according to sources familiar with the matter cited by The Wall Street Journal. Salesforce had been considering a bid in the mid-$30s per share.

Informatica's CEO, Amit Walia, emphasized the company's strong business fundamentals, stating, "Our business fundamentals continue to be very strong and we look forward to discussing our first-quarter financial results and outlook on May 1."

With Canada's Pension Plan and private equity firm Permira, Informatica's two largest shareholders controlling over 75% of outstanding shares, any potential deal would have required their approval. The reaction from Salesforce's investors was also negative, with shares falling more than 7% when news of the potential purchase first emerged.

Salesforce CEO Marc Benioff's reputation for aggressive mergers and acquisitions has drawn criticism from activists, prompting changes within the company. Elliott Management, Inclusive Capital, Starboard Value, and ValueAct were among those seeking to rein in the company's spending.

In response, Salesforce disbanded its M&A board committee, focusing instead on rehiring departed talent and implementing significant layoffs. Benioff also brought ValueAct's Mason Morfit onto the board.

Analysts see the rumored talks as a potential shift in Salesforce's M&A strategy. Gordon Haskett analyst Don Bilson noted, "Since early last year, Benioff has been on a diet that includes no meaningful M&A, and this episode tells us that he’s ready to do some snacking."

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