A highly anticipated acquisition rumor between Salesforce and Informatica has reportedly fallen through. Informatica publicly denied the rumors on Monday, stating that it is not currently considering any acquisition discussions. Many industry experts were skeptical of the potential deal, citing overlaps in their offerings and a lack of strategic alignment.
Salesforce’s stock rose on Monday following a report that it is in talks to acquire Informatica, a cloud data management company. Informatica would be Salesforce’s largest acquisition since it purchased Slack in 2021. The potential deal comes as Salesforce faces competition from Google, which is also targeting enterprise customers.
Enterprise data management company Informatica has quashed rumors of being in acquisition talks with Salesforce. Informatica’s shares dropped over 7% on the news, while Salesforce’s rose around 1%. Salesforce had reportedly been discussing a bid in the mid-$30s per share. Negotiations reportedly broke down due to disagreement on terms. Informatica’s largest shareholders control over 75% of shares and would have had to approve any deal. Salesforce has faced criticism from activist investors for its aggressive acquisition strategy and has recently implemented layoffs and board changes.
Salesforce has officially ended acquisition negotiations with data management company Informatica due to a disagreement over pricing. According to sources, Salesforce offered a mid-$30s per share price, which fell short of Informatica’s expectations. The potential deal, if finalized, would have been one of Salesforce’s largest acquisitions since its purchase of Slack Technologies for nearly $28 billion.
