Salesforce buys Informatica for $8B to bolster AI capabilities
What's the story
Salesforce has announced its acquisition of cloud data management company Informatica for $8 billion in an all equity deal. The agreement comes a year after initial rumors of the acquisition caused stock prices for both companies to fall. At that time, Informatica had denied being up for sale. The deal is expected to enhance Salesforce's AI ambitions by providing more data infrastructure and governance capabilities to run its AI agents safely and responsibly.
Deal specifics
Acquisition details and future plans
The acquisition deal will see Salesforce pay $25 per share in cash for Informatica's Class A and Class B-1 common stock, adjusted for its previous investment in the company. Informatica, which was founded in 1993, serves over 5,000 customers globally. Salesforce CEO Marc Benioff said that this acquisition will enable autonomous agents to act with intelligence and context across every enterprise.
Market impact
Salesforce's acquisition strategy and market reaction
Salesforce's acquisition strategy is "methodical, patient and decisive," according to Robin Washington, the company's president and chief operating and financial officer. The deal is seen as a key enabler for Salesforce's next phase of AI-driven growth. Following the announcement, Informatica's shares jumped 5.8% in premarket trading while Salesforce's stock gained about 1%.
Financial strategy
Funding and integration plans for the acquisition
Salesforce plans to fund the Informatica acquisition through a mix of cash and new debt. The company expects to close the deal in early fiscal year 2027. Once finalized, Salesforce intends to quickly integrate Informatica's capabilities into its operations. This acquisition is one of Salesforce's largest-ever deals and could be strategic amid growing competition in the market for AI-driven databases.