Salesforce in Advanced Talks to Acquire Informatica in a Strategic Move

The potential acquisition signals Salesforce's intent to bolster its data management offerings amid growing competition in the technology sector.

In a significant move indicative of the tech industry's heightened merger and acquisition activity, software titan Salesforce is reportedly in advanced discussions to acquire Informatica, a leading customer relations software maker.

A source familiar with the matter informed Reuters on Friday that the two companies are in advanced talks about a potential deal. The source, who preferred to remain anonymous due to the confidential nature of the discussions, mentioned that an official announcement could be imminent.

According to the reports, the proposed acquisition price is below Informatica's current share price of $38.48. Neither Salesforce nor Informatica responded immediately to requests for comments on the matter.

The deal, if finalized, would mark Salesforce's most significant acquisition since its $28 billion purchase of workplace messaging app Slack Technologies in 2020. This potential acquisition comes as Salesforce's M&A strategy faced scrutiny in early 2023. Activist investors, including ValueAct Capital and Elliott Management, raised concerns about the company's direction and urged management to make changes.

In response to the investor pressure, Salesforce implemented cost-cutting measures, increased share buybacks, and disbanded its M&A board committee.