Why Salesforce Is Paying $8 Billion for 'the Plumbing of AI'
Salesforce (NYSE:CRM) announced Tuesday that it will acquire Informatica (NYSE:INFA) in a cash deal valued at approximately $8 billion. The acquisition underscores Salesforce's intent to bolster its artificial intelligence capabilities by integrating a core player in enterprise data management.
Under the terms of the deal, holders of Informatica's Class A and Class B-1 common stock will receive $25 per share — an 11% premium over the company's closing price of $22.55 on Friday, TechCrunch reported.
Don't Miss:
Hasbro, MGM, and Skechers trust this AI marketing firm —
Invest where it hurts — and help millions heal:.
Informatica CEO Amit Walia framed the acquisition as a shared effort to bring data and AI to life, describing Informatica in a statement as the plumbing for AI and data. Informatica's Intelligent Data Management Cloud platform helps enterprises connect, manage, and unify complex data systems across multi-cloud and hybrid environments.
"Joining forces with Salesforce represents a significant leap forward in our journey," Walia said in a statement on Tuesday. "We have a shared vision for how we can help organizations harness the full value of their data in the AI era."
Steve Fisher, Salesforce's chief technology officer, said that the truly autonomous, trustworthy AI agents need the most comprehensive understanding of their data, adding that Informatica's metadata and catalog tools will complement Salesforce's agentic AI platform, Agentforce.
Trending:
The acquisition builds on Salesforce's previous investments in data and AI. It follows the company's multibillion-dollar acquisitions of Slack at $27.7 billion in 2021, Tableau at $15.7 billion in 2019, and MuleSoft at $6.5 billion in 2018.
According to Salesforce CEO Marc Benioff, Informatica will be integrated alongside Data Cloud, Tableau, and MuleSoft to enable autonomous agents to deliver smarter, safer, and more scalable outcomes for every company.
Salesforce's operating and financial chief Robin Washington said the company will move quickly to leverage Informatica's capabilities across public sector, life sciences, healthcare, and financial services verticals, where governed, trustworthy data is critical.
The deal is expected to close in early fiscal 2027, pending regulatory approvals and other customary closing conditions.Informatica was taken private in 2015 through a $5.3 billion deal led by private-equity firm Permira and the Canada Pension Plan Investment Board. Informatica says it serves more than 5,000 customers across nearly 100 countries, including over 80 of the Fortune 100, according to its acquisition announcement.
The transaction will be financed through a combination of Salesforce's cash and new debt, the company said in the announcement.
Read Next: How do billionaires pay less in income tax than you?.
Image: Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
SALESFORCE (CRM): Free Stock Analysis Report
INFORMATICA (INFA): Free Stock Analysis Report
This article Why Salesforce Is Paying $8 Billion for 'the Plumbing of AI' originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Sprinklr (CXM) Stock Trades Up, Here Is Why
Shares of customer experience software provider Sprinklr (NYSE:CXM) jumped 5.7% in the morning session after the company reported a "beat-and-raise" quarter (Q1 FY-26). Sprinklr raised its full-year revenue and EPS guidance, which blew past analysts' expectations. The quarter was also solid as its revenue, EPS, and adjusted operating income exceeded Wall Street's estimates. The big win came on margins. Operating margin on a non-GAAP basis climbed to 18% from 11% last year, helped by pulling back on sales and marketing costs. That made a real difference in earnings per share, which jumped more than 30% and blew past Wall Street's estimates. Overall, we think this was a solid "beat-and-raise" quarter. After the initial pop the shares cooled down to $8.75, up 2.2% from previous close. Is now the time to buy Sprinklr? Access our full analysis report here, it's free. Sprinklr's shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 24.2% on the news that the company reported weak first quarter results and provided full-year revenue guidance below expectations after being lowered. Also, its revenue guidance for next quarter missed Wall Street's estimates. The company called out a soft demand environment with longer sales cycles and heightened budgetary scrutiny. In addition, it observed higher churn in its core product suites due to reduced marketing spend, elimination of programs, and seat reductions. These issues contributed to the weak guidance as management expects the elevated churn level to continue for the full year FY '25. On the other hand, Sprinklr recorded significant improvement in new large contract wins. Overall, the guidance was quite bad and weighed on the stock. Following the results, D.A. Davidson downgraded the stock's rating from Buy to Neutral, while Cantor Fitzgerald also lowered the rating from Overweight to Neutral. Sprinklr is up 2.4% since the beginning of the year, but at $8.75 per share, it is still trading 19.3% below its 52-week high of $10.84 from June 2024. Investors who bought $1,000 worth of Sprinklr's shares at the IPO in June 2021 would now be looking at an investment worth $496.87. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

Yahoo
an hour ago
- Yahoo
Clean Energy Investments Worth $14 Billion Have Already Been Pulled In 2025—'Returning Us To A Country Powered By Coal And Gas Guzzlers'
Billions in clean energy projects are getting scrapped this year as political decisions in Washington make the future of renewable power more uncertain than ever. According to an analysis by a nonpartisan business group, E2, more than $14 billion worth of U.S. clean energy investments have been canceled or delayed in just the first few months of 2025. The main reason is fear. Specifically, there is concern that Congress may soon eliminate the clean energy tax credits enacted in 2022 as part of the Inflation Reduction Act. The House has already approved a bill that would do just that, and companies are responding by halting projects. Don't Miss: Invest where it hurts — and help millions heal:."Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America's growing energy demand," E2 Communications Director, Michael Timberlake, said in the report. Just in April, companies cancelled or delayed $4.5 billion in clean energy and electric vehicle-related investments, according to the report. Projects getting the axe include a $1.2 billion battery plant in Arizona, a major EV factory shutdown in Michigan, and a paused hydrogen fuel cell project in South Carolina. Many of these losses are happening in Republican-led districts—areas that have so far gained the most from clean energy expansions. E2 estimates that more than $12 billion in canceled projects and over 13,000 lost jobs are in red districts. Trending: Here's what Americans think you need to be considered wealthy. "The House's plan, coupled with the administration's focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers, is causing businesses to cancel plans, delay their plans, and take their money and jobs to other countries instead," E2's Executive Director Bob Keefe told the Associated Press. E2 estimates that since the Inflation Reduction Act passed, companies have announced nearly 400 major clean energy projects across 42 states and Puerto Rico, worth an estimated $132 billion. But 2025 is now shaping up to be a turning point, and not in a good way. Battery and EV projects have been hit the hardest. Battery storage alone accounts for over $10 billion in canceled plans. EV manufacturers have seen around 10,000 jobs disappear alongside more than $6 billion in lost all the news is negative. A handful of companies are still making bets on U.S. clean energy. April brought $486 million in new project announcements, including a $400 million solar wafer factory in Michigan by Corning (NYSE:GLW), which could create 400 jobs, and a $9.3 million investment by a Canadian solar firm in North Carolina. Even so, the scale of cancellations is far outpacing new activity. Timberlake said the entire industry is holding its breath. "If the tax plan passed by the House becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are cancelled. Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America's growing energy demand," he told the AP. Read Next:Can you guess how many retire with a $5,000,000 nest egg? .Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? CORNING (GLW): Free Stock Analysis Report This article Clean Energy Investments Worth $14 Billion Have Already Been Pulled In 2025—'Returning Us To A Country Powered By Coal And Gas Guzzlers' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
an hour ago
- Yahoo
Yum! Brands Tipped For 16% Upside As Analyst Points To Strong Unit Growth, AI Investment
Goldman Sachs analyst Christine Cho upgraded Yum! Brands, Inc. (NYSE:YUM) from Neutral to Buy with a price forecast of $167. The analyst asserted that the company demonstrates a best-in-class unit growth trajectory, which stands out compared to most peers who are either below or at the low end of their stated growth algorithms. Furthermore, the analyst highlighted YUM's high franchise mix, at 98% of units, which she expressed builds relative resilience in the analyst also pointed to improved digital integration across YUM's various brands and at the enterprise level, specifically mentioning Byte! by YUM. The analyst said these digital advancements are expected to improve operational efficiency and drive top-line acceleration. Finally, the analyst emphasized Taco Bell U.S.'s sustained value leadership and the significant opportunity to accelerate international growth for the brand. Based on these considerations, the analyst indicated a 16% upside potential to the 12-month price forecast of $167, which she noted compares favorably to the 9% average upside for the rest of their coverage. The analyst revised the EBITDA estimates to $2.90 billion (from $2.91 billion) for FY25, $3.16 billion (from $3.16 billion) for FY26 and $3.43 billion (from $3.44 billion earlier). In April, Yum! Brands reported first-quarter revenue of $1.79 billion, missing the analyst consensus estimate of $1.8 billion. Adjusted EPS of $1.30 beat the analyst consensus of $1.29. The analyst highlighted several trends in the sector, including diverging brand performance, with casual dining showing more resilience year-to-date than fast food. Cho added that investors are increasingly favoring self-help narratives driven by unique traffic/market share catalysts or margin opportunities based on operational efficiency. While commodity/labor costs are relatively stable, tariffs remain a key swing factor for the second half, and companies are reluctant to raise prices given soft consumer sentiment, she said. The analyst sees elevated risk to global restaurant development plans in FY26/27, potentially pushing unit growth below the stated long-term algorithms. Price Action: YUM shares are trading higher by 0.64% to $144.89 at last check Wednesday. Read Next:Image via Shutterstock Date Firm Action From To Feb 2022 Cowen & Co. Upgrades Market Perform Outperform Dec 2021 Barclays Maintains Equal-Weight Dec 2021 Atlantic Equities Upgrades Neutral Overweight View More Analyst Ratings for YUM View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? YUM BRANDS (YUM): Free Stock Analysis Report This article Yum! Brands Tipped For 16% Upside As Analyst Points To Strong Unit Growth, AI Investment originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.