Salesforce’s Informatica Takeover Talks Reportedly Collapsed

US software company Salesforce Inc.’s negotiations to acquire software-as-a-service firm Informatica Inc. have reportedly collapsed, citing failure to agree on the terms of the arrangement.

People familiar with the matter stated that talks between the two companies had fallen apart after they were unable to see eye to eye on a takeover price.

The business software maker has proposed a mid-$30 per share price for the Redwood City, California-based company, which has seen its stock rise 36% in the past few months to $38.48 on expectations of an acquisition.

The news came a week after Salesforce was said to be in advanced discussions to strike a deal to buy Informatica.

Representatives for both companies have declined to comment on the matter.

Shares in San Francisco, California-based Salesforce traded 0.81% lower at $268.27 in after-hours on Friday, while Informatica fell 0.51% to $35.01 in New York, bringing its market value to $10.38 billion.

Salesforce Missing a Significant Data Management Opportunity

The potential deal would have been one of Salesforce’s largest purchases in recent years, following its $28 billion acquisition of workplace messenger Slack Technologies LLC in 2021, its current biggest, and $15.7 billion takeover of data analytics platform Tableau Software LLC in 2019.

It would have also allowed the enterprise software firm, known for its prolific buying of smaller rivals, to access a wide selection of cloud-based products, artificial intelligence (AI) co-pilot functions, and other capabilities.

Salesforce’s stock has climbed 33% in the last six months due to the integration of AI technology into its products.

In 2023, the firm incorporated Einstein, its native customer relationship management (CRM) AI technology, into its Customer 360 for Health platform to help tailor patient experiences by providing healthcare providers with information about patients’ preferences and medications.

Acquiring Informatica would have provided Salesforce an opportunity to integrate the data management software company’s offerings into its own products.

Salesforce would have also been able to connect with the data management firm’s major clientele, including British consumer goods giant Unilever plc, Japanese carmaker Toyota Motor Corp., and London-based accounting firm Deloitte.

With a current market cap of over $10 billion, Informatica’s value has increased twice over the past year after it launched a suite of AI tools across its corporate software product.

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