Salesforce has announced a definitive agreement to acquire cloud data management specialist Informatica. The deal is worth approximately $8 billion. After a previous failed attempt early last year, the parties have now reached an agreement.
The acquisition represents a significant expansion of Salesforce’s data portfolio. Informatica shareholders will receive $25 per share in cash. The company anticipates completing the transaction at the start of the fiscal year (2027).
Salesforce plans to finance the acquisition through a mix of cash and new debt. “Our acquisition strategy is methodical, patient, and decisive,” said Robin Washington, president and chief operating and financial officer at Salesforce.
Strategic move towards AI growth
The deal aligns with Salesforce’s ambitions for AI, including the growth Salesforce aims to achieve with AI. Washington also emphasizes that the acquisition will serve as a significant catalyst for the next phase of AI-driven growth at the company. “We will move quickly to integrate their capabilities,” said the CFO.
Informatica also competes in part with Salesforce’s own MuleSoft division. This overlap could potentially lead to an investigation by authorities, although Informatica’s solutions are primarily complementary to the Salesforce portfolio.
Previous talks broke down
The new deal comes about a year after previous negotiations failed to produce results. At the time, the parties were unable to agree on the terms and price. Redwood City-based Informatica had a market value of $6.8 billion at the close of trading on Friday. The company also has approximately $1.9 billion in outstanding debt.
Big step for Salesforce
This is another major acquisition for Salesforce. The company previously acquired MuleSoft, Tableau, and Slack, but then slowed down its pace of acquisitions. This may have been partly due to pressure from activist shareholders, who demanded a greater focus on organic growth.