Enterprise data management company Informatica has denied rumors that it is in talks to be acquired by Salesforce. The denial comes after reports earlier this week suggested that Salesforce was interested in a roughly $10 billion deal.
Informatica shares slumped more than 7% on the news, while Salesforce shares rose around 1%. The acquisition would have been Salesforce’s largest since its 2021 purchase of Slack.
Negotiations between the two companies reportedly broke down after they could not agree on terms. The Wall Street Journal previously reported that Salesforce had been discussing a bid in the mid-$30s per share.
In a statement, Informatica CEO Amit Walia said that the company’s “business fundamentals continue to be very strong” and that it looks forward to discussing its first-quarter financial results on May 1.
Informatica’s two largest shareholders, Canada’s Pension Plan and private equity firm Permira, control more than 75% of outstanding shares and would have had to approve any deal.
Salesforce’s investors also reacted negatively to the idea of the deal, sending shares down more than 7% when news of the potential purchase first broke.
Salesforce CEO Marc Benioff has been criticized by activist investors for his aggressive acquisition strategy. In response, Salesforce has dismantled its M&A board committee and turned its focus to re-hiring departed talent. It has also implemented deep layoffs.
Benioff also recruited ValueAct’s Mason Morfit to the board.
The rumored talks suggest that Salesforce’s aversion to M&A may be tempering, Gordon Haskett analyst Don Bilson wrote in a Monday note.
“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,” Bilson wrote.
