Salesforce Drops Acquisition Plans for Informatica in $11 Billion Deal

Salesforce has decided to abandon its efforts to acquire data management software company Informatica for an estimated $11 billion, as reported by sources familiar with the matter.

The potential acquisition talks between Salesforce, a prominent CRM company based in San Francisco, and Informatica, a data management software specialist located in Redwood City, California, have now ceased after a failure to reach an agreement on the deal terms.

The disagreement, which led to Salesforce walking away from the deal, is believed to have stemmed from the valuation of Informatica shares, which have seen a decline in price since news of the acquisition bid surfaced earlier this month.

Informatica’s stock price dropped from $38.48 per share on April 12 to $35.19 per share on April 19, reflecting the impact of the failed deal negotiations.

The potential acquisition had sparked excitement in the tech industry when discussions between Salesforce and Informatica reached an advanced stage in early April.

Salesforce, a company with a current market capitalization of $262 billion, boasts a significant partner network and has been experiencing steady growth, with plans to double its revenue by 2024.

Following the news of its intent to acquire Informatica, Salesforce stock experienced a decline, falling from around $299 per share on April 12 to approximately $270 per share on April 19.

Informatica, on the other hand, currently has a market capitalization of $10.4 billion, with its stock price sliding from $38.48 per share to $35.19 in the wake of the failed acquisition deal.

In 2021, Informatica returned to the public markets, with private equity firm Permira and the Canadian Pension Plan Investment Board holding a controlling stake of over 75 percent in the company.

Salesforce has a history of making significant acquisitions, such as the $28 billion purchase of Slack in 2021, the $15.7 billion deal for Tableau Software in 2019, and the $6.5 billion acquisition of MuleSoft in 2018.