Salesforce on Tuesday said that they are going to buy Informatica for around $8 billion.
Last year the deal regarding Informatica was cancelled due to both of the companies being unable to agree on the terms of the deal.
[Informatica Inc. is an American software development company founded in 1993. It is headquartered in Redwood City, California. Its core products include enterprise cloud data management and data integration. It was co-founded by Gaurav Dhillon and Diaz Nesamoney. Amit Walia is the company’s CEO]
Salesforce CEO Marc Benioff stated; “Salesforce and Informatica will create the most complete, agent-ready data platform in the industry,”. Moreover he added that this deal will strengthen its position in the $150 billion-plus data market.
Buying informatica is the biggest deal of the company since in 2021 it’s acquisition of Slack Technologies for almost $21 Billion.
This deal will help Salesforce on how to manage and have a good control over the business data and how to use them. It would also help Salesforce to expand its data management tools.
For each share of Informatica, Salesforce is going to pay $22, which is almost 30% more than that of Informitca closing price on May 22.
Salesforce shares are almost up to 1.2%, while Informatica shares round about 5.8% at $23.86.
Salesforce is expecting to close the deal early in the February of the next monetary year. It is expected that this deal will help the enterprise an increase in it’s profit margin in the upcoming year as soon the deal closes.
The company has been providing AI agents—programs that can manage repetitive tasks without human oversight—to companies for customer support and hiring. Its “Agentforce” technology, which generates AI-powered virtual agents, has secured over 1,000 commercial deals.
According to Scotiabank analysts, since “data management software is now most often sold as part of mega-vendor tool kits,” the move could help Salesforce catch up to its software competitors.
With its largest acquisition of Slack in 2021 and data analytics company Tableau Software in 2019 for $15.7 billion in equity, the business software giant has a history of bigger deals.
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When activist investors like ValueAct Capital and Elliott Management pushed for reforms to increase profitability in 2023, those arrangements came under investigation.
(Source: REUTERS)
