Salesforce is in advanced talks to acquire Informatica

Media reports revealed on Friday that Salesforce is in advanced talks to acquire data management software provider Informatica.

According to CNN, the Wall Street Journal – citing people familiar with the negotiations – said that the size of the acquisition deal that was discussed is less than Informatica’s current share price of $38.48, which is a potential complicating factor.

Informatica, a company specializing in cloud services and data management, is headquartered in Redwood City, California, and has a market value of about $11.35 billion.

In early 2023, Salesforce came under intense pressure from investors to make several changes in order to reduce costs, with calls to increase share buybacks, and demands to dismantle the mergers and acquisitions committee.

San Francisco-based Salesforce has a long history of acquisitions, financings, and investments.

Salesforce led a $106 million funding round for Nvidia-backed Together AI.

In 2020, Salesforce acquired the workplace messaging application (Slack Technologies) in a deal worth $27.7 billion, in one of the largest acquisition deals in the world of cloud computing.