Billion-euro deal: Salesforce buys Informatica

The US software company Salesforce is to buy the US provider of data integration software Informatica for around eight billion US dollars. This was announced by Salesforce on Tuesday. “The planned acquisition will expand Salesforce's trusted data foundation, which is critical to the deployment of powerful and responsible agent-based AI,” the announcement said.

With the acquisition of Informatica, which has strengths in AI-powered cloud data management for enterprises, Salesforce will expand its data management tools and gain greater control over the management and use of its business data. This is considered an important step towards integrating generative artificial intelligence (AI) more deeply into its products. Salesforce already offers companies AI agents for areas such as recruitment or customer service. With the acquisition of Informatica, Salesforce is further expanding its position in the booming AI market.

“Together, Salesforce and Informatica will create the industry's most comprehensive, agent-enabled data platform,” said Marc Benioff, Chairman and CEO of Salesforce. “By combining the power of Data Cloud, MuleSoft and Tableau with Informatica's industry-leading advanced data management capabilities, we will enable autonomous agents to deliver smarter, safer and more scalable outcomes for any organization and significantly strengthen our position in the $150+ billion enterprise data market.”

Takeover at the second attempt

Last autumn, Salesforce announced the acquisition of Own Data, an Israeli company specializing in data protection and management, for USD 1.9 billion. Salesforce had already held takeover talks with Informatica, which offers similar applications to Own, in spring 2024. However, these fell through after the two companies were unable to agree on the terms.

Negotiations picked up again in early April when Informatica was approached by a handful of potential buyers, including private equity firms and others, writes the news agency Reuters, citing a person familiar with the sales process.

For Salesforce, the Informatica takeover is the largest acquisition since the purchase of the communication tool Slack in 2021 for 27.7 billion US dollars. Salesforce expects to complete the acquisition “early in Salesforce's 2027 fiscal year” through a mix of cash and new debt, according to the company's statement.

“Next phase of Salesforce's AI-driven growth”

Following the closing of the transaction, Salesforce said it plans to rapidly integrate Informatica's technology stack – including data integration, quality, governance, and other – into the Salesforce ecosystem. It will also support Informatica's continued strategy to “build best-in-class, AI-powered data management products and provide a complete end-to-end platform with industry-leading, integrated solutions for connecting, managing and unifying data in any cloud, hybrid or multi-cloud environment,” it said.

“This proposed acquisition will be a key enabler for the next phase of Salesforce's AI-driven growth,” said Robin Washington, President & Chief Operating and Financial Officer of Salesforce. “We will move quickly to integrate Informatica's capabilities and unlock synergies, particularly in areas such as the public sector, life sciences, healthcare and financial services.”

(akn)