Informatica says it won’t sell company after Salesforce interested in $10 billion deal

Amit Walia, CEO of Informatics, New York Stock Exchange, October 27, 2021.

Source: New York Stock Exchange

Enterprise data management company Informatics The company is not currently discussing an acquisition, it said earlier on Monday sales force Interested in a deal worth an estimated $10 billion.

Shares of Informatica fell more than 7% after the news broke, while Salesforce shares rose nearly 1%. The acquisition was essentially Salesforce’s largest since striking a deal to acquire Slack in 2021.

The Wall Street Journal previously reported that talks broke down after the two sides could not agree on terms. Salesforce is discussing a bid of about $30 per share, people familiar with the matter told The Wall Street Journal.

“The fundamentals of our business remain very strong and we look forward to discussing our first quarter financial results and outlook beginning May 1,” Informatica CEO Amit Walia said in a statement.

Informatica’s two largest shareholders, Canada Pension Plan Corp. and private equity firm Permira, control more than 75% of the outstanding shares, so any deal must be approved. Salesforce investors also reacted negatively to the idea of ​​a deal, with Salesforce shares falling more than 7% when news of the potential acquisition first emerged.

Salesforce CEO Marc Benioff’s voracious appetite for mergers and acquisitions is one of the reasons many employees are looking to rein in the company’s spending in 2023.

Salesforce Chairman and CEO Mark R. Benioff attends the 54th Annual Meeting of the World Economic Forum in Davos, Switzerland on January 18, 2024.

Dennis Balibus

Elliott Management, Inclusive Capital, Starboard Value and ValueAct are working on the turnaround at the enterprise software company.

In response, the Salesforce Mergers and Acquisitions Board Committee focused on disbanding and rehiring departing talent. It also implemented deep cuts. Benioff also appointed ValueAct’s Mason Morfitt to the board.

Gordon Haskett analyst Don Bilson wrote in a note on Monday that the rumored discussions suggest that Salesforce’s aversion to the merger may be easing.

“Benioff has been on a diet of no meaningful acquisitions since early last year, and this episode tells us he’s ready for a snack,” Bilson wrote.