Salesforce, the renowned customer relations software maker, is reportedly in advanced negotiations to acquire Informatica, according to a source familiar with the matter.
The potential deal demonstrates the increasing trend of deal-making within the technology sector.
The source, who opted for anonymity due to the confidential nature of the discussions, hinted that an official announcement regarding the acquisition could be imminent.
The Wall Street Journal, which initially reported the talks between Salesforce and Informatica, noted that the proposed price under negotiation is below Informatica’s current share price of $38.48.
Both Salesforce and Informatica have yet to respond to requests for comments on the matter.
Informatica, founded in 1993, specializes in providing subscription-based data management services via the cloud, catering to over 5,000 active customers and aiding in task automation.
Permira, a private equity firm, holds a controlling stake of over 75% in Informatica alongside the Canadian Pension Plan Investment Board (CPPIB). However, both entities declined to comment on the potential acquisition, with CPPIB unreachable for further clarification.
If the deal materializes, it would mark Salesforce’s most significant acquisition since its purchase of workplace messaging app Slack Technologies for nearly $28 billion in 2020.
Salesforce’s aggressive approach to acquisitions faced scrutiny in early 2023 from activist investors such as ValueAct Capital and Elliott Management, prompting calls for strategic changes within the company.
In response, Salesforce implemented cost-cutting measures, ramped up share buybacks, and disbanded its M&A board committee.
The company has a history of prolific acquisitions, evident in its purchase of data analytics platform Tableau Software for $15.7 billion in an all-stock deal in 2019.
Amidst the prevailing enthusiasm for artificial intelligence in the tech industry, several substantial deals have been inked recently. In January, design software company Synopsys agreed to acquire smaller rival Ansys for about $35 billion.
Similarly, Hewlett Packard Enterprise struck a $14 billion deal in January to acquire networking gear maker Juniper Networks.
The technology sector accounted for the largest share of mergers and acquisitions during the first quarter, surging more than 42% year-on-year to approximately $154 billion, according to Dealogic.