In $8 billion deal Informatica has been acquired by Salesforce for AI-focused data push

Salesforce has announced plans to acquire data management firm Informatica in a deal valued at approximately $8 billion, marking its largest acquisition since it bought Slack Technologies in 2021. The acquisition highlights Salesforce’s renewed focus on major mergers and acquisitions as it seeks to boost its capabilities in the fast-moving artificial intelligence sector.

After backing out of talks with Informatica last year over disagreements related to terms, Salesforce has now resumed discussions and reached an agreement. The offer values Informatica at $25 per share, which is around 30% higher than the company’s closing stock price on May 22-the day before reports of revived talks began to circulate. Following the announcement, Informatica’s stock climbed 5.8% in premarket trading to $23.86, while Salesforce shares also saw a 1.2% increase.

This acquisition is set to strengthen Salesforce’s data management capabilities and give the company greater control over enterprise data-an essential component as it rolls out generative AI tools across its platform. According to a Reuters report, Salesforce sees this move as instrumental in developing a more comprehensive, AI-ready data ecosystem. Salesforce and Informatica will create “the most complete, agent-ready data platform in the industry,” according to CEO Marc Benioff, reaffirming the company’s goals in the enterprise data market, which is worth over $150 billion.

Salesforce has already made significant strides in the AI space, particularly through its Agentforce platform, which supports AI agents that can handle tasks like customer support and recruiting. More than 1,000 paid customers have signed on to use Agentforce so far.

Scotiabank analysts believe that acquiring Informatica will enable Salesforce to better compete with top-tier software providers, noting that data management software is increasingly bundled with tools from large-scale vendors. A combination of fresh debt and cash will be used to finance the sale, which Salesforce anticipates closing early in the upcoming fiscal year, starting in February. The company anticipates the acquisition will begin contributing positively to operating margins from the second year after completion.

One of the most noteworthy acquisitions in Salesforce’s history was the $15.7 billion purchase of Tableau Software in 2019. However, in recent years, its M&A strategy has faced pressure from activist investors such as Elliott Management and ValueAct Capital, who have called for greater profitability.