Salesforce buys data management major informatica for $8bn: here's why

Salesforce has announced the acquisition of data management company Informatica for $8 billion. 

The deal is expected to enhance the cloud-based software company’s services in the artificial intelligence market.

Why Salesforce is buying Informatica

The company said the deal will increase its data foundation, which will be critical to employ powerful and responsible AI agents. 

Marc Benioff, Chair and CEO of Salesforce, said,

Salesforce is mainly engaged in customer relationship management software service.

It said it will combine Informatica's data catalog, integration, governance, quality and privacy, metadata management, and MDM with its own platform, Agentforce.

Agentforce creates AI powered virtual representatives. The company has closed more than 1000 paid deals through this platform.

In the press release, Steve Fisher, President and Chief Technology Officer, Salesforce, said,

How much is Salesforce paying for Informatica?

Salesforce is buying Informatica for $8 billion. Under the deal, the class A and B1 shareholders of Informatica will receive $25 per share in cash from Salesforce. 

The transaction is expected to be closed in FY2027, subject to necessary regulatory approvals and other closing conditions. 

The San Francisco-based company said the transaction would be funded through a combination of cash and new debt. 

The company expects improvement in cash flow, earnings per share, and operating margin from the second year after closing the transaction. 

It cites increased revenue from their new data portfolio and cost synergies after the acquisition for this prediction. 

Salesforce's past acquisitions

Informatica adds to Salesforce's long list of acquisitions. Salesforce previously bought Mulesoft for $6.5 billion in 2018 and Tableau Software in 2019 for $15.7 billion.

In 2021, it acquired Slack Technologies for $27.7 billion.

The deal is a return to the company's merger and acquisition streak. Activist investors like ValueAct Capital and Elliott Management pressured the company in 2023 for the deals.

They had pressed the company to improve its profitability.

Salesforce is expected to announce its first quarter results for fiscal year 2026 on May 28.

Informatica's shares surged 5% on the market open on Tuesday. Salesforce's shares, on the other hand, were up 0.17%.