Salesforce to buy Informatica for $8 billion to bolster AI data tools
Salesforce said today it would buy Informatica for about $8 billion, betting on the data management platform to sharpen its competitive edge in the booming artificial intelligence market.
The cloud-software giant is returning to big-ticket M&A after years on the sidelines, driven by scrutiny from activist investors pressing for better profitability.
It had last year shelved deal talks with Informatica after the companies failed to agree on deal terms.
Buying Informatica, in its biggest deal since its nearly $28 billion acquisition of Slack Technologies in 2021, would help Salesforce expand its data management tools as it doubles down on AI-powered products.
The deal would also allow Salesforce to tighten control over how business data is managed and used, an essential step as it races to embed generative AI deeper into its products.
"Salesforce and Informatica will create the most complete, agent-ready data platform in the industry," said Salesforce CEO Marc Benioff, adding the deal will strengthen its position in the $150 billion-plus data enterprise market.
The company has been offering AI agents - programmes that can handle routine work without human supervision - to businesses for recruiting and customer service. It has closed more than 1,000 paid deals for "Agentforce", its platform for creating AI-powered virtual representatives.
Salesforce is paying $25 for each share of Informatica, a premium of about 30% to Informatica's closing price on May 22, the day before news of renewed talks emerged.
Informatica shares were 5.8% higher in premarket trading at $23.86, while Salesforce was up 1.2%.
Salesforce expects to close the deal in early next fiscal year starting February through a mix of cash and new debt. The deal is expected to boost its operating margin from the second year after closing.
Scotiabank analysts said the move could help Salesforce catch-up with software rivals as "data management software is now most often sold as part of mega-vendor tool kits".
The business software company has been a prolific dealmaker, buying data analytics firm Tableau Software in 2019 for $15.7 billion in stock, and Slack in 2021 in its biggest deal.
Those deals drew scrutiny in 2023 when activist investors, including ValueAct Capital and Elliott Management, pressed for changes to improve profitability.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTÉ News
7 days ago
- RTÉ News
Kildare man who was 'lost' in LC finds his way in tech
As thousands of students prepare to sit their Leaving Cert exams, we are hearing from young people who took alternative paths to the CAO points race. In 2020, Kildare native Jack Yeates was not sure what he wanted to do when his time in secondary school wrapped up. Diagnosed with dyslexia as a young child, he knew that taking an academic route after school was not something that he wanted to do. "My idea was always that I wasn't going to be this big academic scholar by any means, but I still wanted to do as best as I could," he said. When he was discussing his options with career guidance counsellors, Jack said that he was more drawn to apprenticeships and community colleges. "I always enjoyed more physical subjects in school, like construction, and it was from that that I was recommended maybe being an electrician or a network site engineer. That's where my focus was." In the year after he graduated from school, Jack worked full time in retail and in September of 2021, he did a Post Leaving Cert course in Advanced Computer Science at St Conleth's Community College in Newbridge. PLC courses usually last one to two years and after Jack completed his year-long course, he began making applications for a two-year apprenticeship in software development. After receiving offers from three companies, Jack began his apprenticeship at Salesforce, a cloud-software company which has its European headquarters based in Dublin. "The PLC was a bit of a shot in the dark," Jack said. "It was something that I got real enjoyment out of and it gave me a broad scope of the industry and I thought 'You know what? Maybe I could make something of myself in this industry'." In August of last year, Jack completed his apprenticeship and won the ICT Apprenticeship of the Year Award the following October. After his apprenticeship ended, Jack was on the lookout for jobs and came across a role in Salesforce, which he felt suited him. He secured the position and began working as a Customer Centric Engineer for the company last February. "I found that the job scope and what they were looking for really suited what I had done in the past, and I believe my apprenticeship stood to me massively," he said. Now, Jack is keen for people to know that exams are not the only option and that there are other paths that can be taken after secondary school. "There were days when a lot of my classmates would be going off to college open days and writing down their dream colleges and dream courses," he said. "It did get a little disheartening at a stage, you do generally feel a little bit lost in that kind of way when you've made up your mind that 'college isn't for me'." "One exam isn't the 'be all, end all' for you," he said. "There's so many doors that can open if you just go looking for them. "Sometimes they won't show to you, you just have to really go and look for them yourself."
Business Post
29-05-2025
- Business Post
Uisce Éireann needs €2bn to help reach government housing targets
Salesforce, which employs about 2,000 people in Ireland, has raised its annual sales... Webio, an AI messaging company, has been acquired by fellow Irish company Aryza for... The Irish Times Group is looking to appoint a group editor to oversee operations... Donald Trump, the US president, bristled at suggestions that Wall Street believed... That Sarah Friar has managed to make it to the top of the ladder in Silicon Valley... The Irish Small and Medium Enterprises Association (Isme) has called for a 'reset'... Ireland will not engage in or facilitate a 'divide and conquer' approach within...
RTÉ News
27-05-2025
- RTÉ News
Salesforce to buy Informatica for $8 billion to bolster AI data tools
Salesforce said today it would buy Informatica for about $8 billion, betting on the data management platform to sharpen its competitive edge in the booming artificial intelligence market. The cloud-software giant is returning to big-ticket M&A after years on the sidelines, driven by scrutiny from activist investors pressing for better profitability. It had last year shelved deal talks with Informatica after the companies failed to agree on deal terms. Buying Informatica, in its biggest deal since its nearly $28 billion acquisition of Slack Technologies in 2021, would help Salesforce expand its data management tools as it doubles down on AI-powered products. The deal would also allow Salesforce to tighten control over how business data is managed and used, an essential step as it races to embed generative AI deeper into its products. "Salesforce and Informatica will create the most complete, agent-ready data platform in the industry," said Salesforce CEO Marc Benioff, adding the deal will strengthen its position in the $150 billion-plus data enterprise market. The company has been offering AI agents - programmes that can handle routine work without human supervision - to businesses for recruiting and customer service. It has closed more than 1,000 paid deals for "Agentforce", its platform for creating AI-powered virtual representatives. Salesforce is paying $25 for each share of Informatica, a premium of about 30% to Informatica's closing price on May 22, the day before news of renewed talks emerged. Informatica shares were 5.8% higher in premarket trading at $23.86, while Salesforce was up 1.2%. Salesforce expects to close the deal in early next fiscal year starting February through a mix of cash and new debt. The deal is expected to boost its operating margin from the second year after closing. Scotiabank analysts said the move could help Salesforce catch-up with software rivals as "data management software is now most often sold as part of mega-vendor tool kits". The business software company has been a prolific dealmaker, buying data analytics firm Tableau Software in 2019 for $15.7 billion in stock, and Slack in 2021 in its biggest deal. Those deals drew scrutiny in 2023 when activist investors, including ValueAct Capital and Elliott Management, pressed for changes to improve profitability.
