Business software giant Salesforce (CRM.N) has withdrawn from negotiations to acquire data-management software firm Informatica (INFA.N) after failing to reach an agreement on terms, according to a source familiar with the matter. The discussions, which had progressed to an advanced stage earlier in April, would have marked one of Salesforce’s largest acquisitions to date.
Neither Salesforce nor Informatica immediately responded to requests for comment regarding the failed deal. Reports indicate that Salesforce had been considering a price for Informatica in the mid-$30s per share. However, talks between the two companies reached an impasse, as reported by the Wall Street Journal, which first disclosed the breakdown in negotiations on Sunday.
Informatica’s stock price had surged following news of the potential acquisition talks, reaching $38.48 per share on April 12. However, by Friday, its shares had dipped to $35.19, valuing the California-based company at approximately $11.2 billion, inclusive of debt.
Established in 1993, Informatica provides subscription-based data management services via cloud platforms, catering to over 5,000 active clients. Among its clientele are industry giants like Unilever and Deloitte, as detailed on the company’s official website.
Salesforce’s approach to acquisitions has faced scrutiny in recent times, particularly in early 2023, when activist investors, including ValueAct Capital and Elliott Management, questioned the company’s strategy. Responding to investor concerns, Salesforce implemented measures such as cost-cutting initiatives and increased share repurchases, along with disbanding its mergers and acquisitions board committee.
Throughout its corporate history, Salesforce has maintained a reputation for aggressive acquisition strategies, targeting smaller competitors to bolster its offerings. In 2019, the company acquired data analytics platform Tableau Software in an all-stock transaction valued at $15.7 billion. Subsequently, in 2020, Salesforce announced its intention to purchase workplace messaging app Slack Technologies for nearly $28 billion, representing its largest acquisition endeavor to date.