Salesforce drops $11bn Informatica acquisition pursuit

Salesforce has dropped its acquisition plans to buy data management software company Informatica for an estimated $11bn, reports indicate

Salesforce has reportedly backed away from its pursuit to acquire Informatica, a data management software specialist, for roughly $11bn.

Both sides couldn't agree on the terms of the deal and talks have now come to a close, according to multiple news outlets including The Wall Street Journal and Reuters.

Informatica's share price has dropped since Salesforce's acquisition bid for the company was discovered earlier this month - from $38.48 per share on April 12 to $35.19 per share on 19 April.

The disagreement that led Salesforce to drop the deal was likely based on the price tag of Informatica shares, according to reports.

Purchase talks between the San Francisco-based CRM superstar and California-based Informatica were in advanced stages in early April.

Informatica and Salesforce did not immediately respond to request for comment on the matter by press time.

Salesforce and Informatica stock

Salesforce's market capitalisation currently sits at $262bn as of Monday morning. The company has about 12,000 partners and has been investing in AI innovation in 2024.

Salesforce's stock price on 12 April, when news first broke of its intent to acquire Informatica, was around $299 per share.

As of 19 April, Salesforce stock is at around $270 per share.

Informatica's market cap is currently $10.4bn. Informatica's stock price has fallen 9 per cent from April 12 at $38.48 per share to $35.19 Monday.

Informatica became a public company for a second time in 2021, and private equity firm Permira and the Canadian Pension Plan Investment Board (CPPIB) hold a controlling stake of more than 75 per cent in the vendor.

Salesforce acquisition history

Salesforce sent shockwaves through the tech industry in 2021 with its $28bn purchase of Slack, marking the company's largest acquisition ever.

The company also pulled the acquisition trigger on data analytics platform company Tableau Software in 2019 for $15.7bn.

Another large purchase from Salesforce came in 2018 with the acquisition of software platform provider MuleSoft for $6.5bn.