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The Hill
3 days ago
- Business
- The Hill
Business leaders are reshaping Washington and delivering for taxpayers
President Trump's historic comeback victory included a mandate from the American people to reform the federal government. The inefficiencies of our broken bureaucracy are all too apparent to everyday Americans, and it was a big reason why they hired a new administration that specifically ran on fixing the system. Americans know the problems our government faces today are urgent and require immediate action. They have watched as the federal bureaucracy has exploded in size and as their tax dollars are wasted on frivolous spending. All of us realize that maintaining our current course is no longer sustainable. We are trillions of dollars in debt, and steadily approaching a point of no return. As Americans cut costs and work tirelessly to balance their own budgets after four years of economic uncertainty, they are now rightly demanding that the federal government do the same. But like the old cliche about the definition of insanity, there is no reason to think that the same processes and personnel who have spent decades in government bureaucracies will be able to reform themselves without some outside help. The status quo won't shake up the status quo. We need an infusion of new ideas, personnel and leadership in our capital city. Specifically, we need to lean on one of America's great strengths and resources: our incredibly successful, world-leading private sector. American businesses are second to none. We need to tap into the insights, methods and expertise of our business leaders and technical experts to turn the government around. Thankfully, President Trump and his administration are doing just that. A number of the president's cabinet secretaries are Washington outsiders who bring heavyweight private sector resumes to their new roles. The same goes for key subcabinet posts. For example, President Trump's nominee to run the federal Office of Personnel Management is a venture capitalist and tech executive with a quarter century of high-stakes business leadership under his belt. The most notable place where the president has brought in fresh energy and ideas from the private sector is the Department of Government Efficiency. Everybody knows about its leader, the hugely successful and outspoken entrepreneur Elon Musk. But a wealth of other top tech talent is working away behind the scenes, helping to find new efficiencies, examples of waste to cut and opportunities to update and upgrade how our government works. The team includes the sharp, young engineers who have attracted political and press attention, but it also includes veteran executives and marquee leaders who have answered the call to serve. Tom Krause, CEO of Cloud Software Group, is helping reform the Treasury Department's ancient payment processes. Joe Gebbia, co-founder of Airbnb, is helping to digitize the tangled processes around federal retirements. All of us are lucky that such well-respected minds in business and management are helping refocus our government around stewarding funds wisely and getting results. This is a turnaround project like no other, and it needs all hands on deck. I had the privilege of serving on the U.S. House Energy and Commerce Committee during my tenure representing the Commonwealth of Pennsylvania. I saw firsthand the misuse of federal funds, the inefficiency of the bureaucracy and the blatant waste of taxpayer dollars. But making meaningful cuts in a smart, targeted way can be tricky business. We want to crack down on waste, fraud and overreach but preserve genuinely important programs that support hardworking families, encourage innovation in key fields like energy, national security and AI, and give taxpayers a strong return for their money. Separating the wheat from the chaff takes skilled analysis and strong, outcome-driven leadership. These are not virtues for which Washington is famous. Luckily, the business world has them in spades. Despite consternation from some in the media about bringing private-sector expertise into government, this is absolutely nothing new. High-profile businesspeople have served and advised presidential administrations of both parties, bringing their fresh perspectives to bear on problems that have stumped the permanent class inside Washington. President Obama brought General Electric CEO Jeff Immelt to lead an economic advisory board, along with entrusting the executive chairman of Alphabet, Eric Schmidt, to lead a major Pentagon innovation board. President Biden staffed his Council of Advisors on Science and Technology with a whole list of private sector leaders, including from tech giants Google, Microsoft and Nvidia. President Trump and DOGE are working to fix the broken systems our government relies on. They are absolutely right to call upon our country's deep well of human capital in the form of our top business leaders to do it. The American people have spoken, and they want significant and meaningful reform. A majority of Americans support DOGE's mission to increase accountability and enact long-lasting federal reforms. Already, thanks to DOGE's efforts, billions of dollars worth of savings have been found. But if we're actually going to redirect the slow-moving shipwreck of federal waste and budget deficits, these early efforts must only be the beginning. We need to keep drawing on outside perspectives and the business world's results-driven mindset to cut through the jungle of red tape and deliver meaningful results for Americans everywhere.
The Hindu
7 days ago
- Business
- The Hindu
Salesforce to buy Informatica for $8 billion to bolster AI data tools
Salesforce said on Tuesday 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. Last year it shelved deal talks with Informatica after the companies failed to agree on deal terms. The negotiations picked up steam again in early April, when a handful of potential buyers, including private equity firms and other companies, approached Informatica around the same time, according to a person familiar with the sale process. Thoma Bravo and Cloud Software Group were part of the five interested buyers of the asset, that person and another person familiar with the process said. Thoma Bravo declined to comment, while Cloud Software Group was not immediately available to comment. 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 - programs 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 up 5.8% in afternoon trading at $23.86, while Salesforce was up 1.78%. 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.
Indian Express
7 days ago
- Business
- Indian Express
Salesforce to buy Informatica for $8 billion to bolster AI data tools
Salesforce said on Tuesday 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. Last year it shelved deal talks with Informatica after the companies failed to agree on deal terms. The negotiations picked up steam again in early April, when a handful of potential buyers, including private equity firms and other companies, approached Informatica around the same time, according to a person familiar with the sale process. Thoma Bravo and Cloud Software Group were part of the five interested buyers of the asset, that person and another person familiar with the process said. Thoma Bravo declined to comment, while Cloud Software Group was not immediately available to comment. 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 – programs 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 up 5.8% in afternoon trading at $23.86, while Salesforce was up 1.78%. 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.
Business Times
7 days ago
- Business
- Business Times
Salesforce to buy Informatica for US$8 billion to bolster AI data tools
[NEW YORK] Salesforce said on Tuesday (May 27) it would buy Informatica for about US$8 billion, betting on the data management platform to sharpen its competitive edge in the booming artificial intelligence (AI) 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. Last year it shelved deal talks with Informatica after the companies failed to agree on deal terms. The negotiations picked up steam again in early April, when a handful of potential buyers, including private equity firms and other companies, approached Informatica around the same time, according to a source familiar with the sale process. Thoma Bravo and Cloud Software Group were part of the five interested buyers of the asset, that person and another source familiar with the process said. Thoma Bravo declined to comment, while Cloud Software Group was not immediately available to comment. Buying Informatica, in its biggest deal since its nearly US$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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up '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 US$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 US$25 for each share of Informatica, a premium of about 30 per cent to Informatica's closing price on May 22, the day before news of renewed talks emerged. Informatica shares were up 5.8 per cent in afternoon trading at US$23.86, while Salesforce was up 1.78 per cent. 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 US$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. REUTERS
CNA
23-05-2025
- Business
- CNA
Informatica explores sale again, Salesforce among suitors
Informatica is exploring a sale after attracting renewed takeover interest from suitors, including Salesforce, a person familiar with the matter told Reuters on Friday. Shares of Informatica had surged as much as 20 per cent in afternoon trading after Bloomberg News first reported that the two companies are in discussion again. They were up 2.8 per cent in extended trading. The companies did not immediately respond to Reuters requests for comment. Informatica offers subscription-based data management services over cloud and helps automate tasks for its customers. Salesforce and Informatica abandoned their advanced talks for a deal in April 2024 after failing to agree on the terms, Reuters reported. If a deal is reached, it could be announced as soon as next week, Bloomberg News reported, adding that a final decision has not been made yet and other buyers may turn up, with Cloud Software Group also interested in a deal.
