Salesforce (NYSE:) CEO Marc Benioff is reportedly targeting Informatica (INFA) in what could be one of the company's biggest acquisitions, strengthening Salesforce's position in data integration and management. I am.
The Wall Street Journal first reported that talks are continuing between Salesforce and Informatica, and an agreement could be announced within a week, but the deadline has been extended and negotiations are slowing. There is a possibility that no agreement will be reached.
INFA stock rose 4% in premarket trading Monday, while CRM fell 2.5%.
This potential acquisition is significant because Informatica is a direct competitor to Mulesoft, the third-largest acquisition by Salesforce, valued at approximately $11.4 billion based on its last closing price in New York. .
Bloomberg Intelligence analysts said in a note that the deal could spur further consolidation in the software-as-a-service (SaaS) space and attract regulatory attention.
Under Mr. Benioff's leadership, Salesforce has recently been grappling with challenges from activist investors like Elliott Investment Management, which are pushing for greater efficiency.
Last year, the cloud-based software giant managed to avoid a proxy fight with Elliott through strategic adjustments and a rise in its stock price.
Meanwhile, Informatica's stock price has risen 36% this year, and market forecasts predict that revenue for the fiscal year will rise about 6% to $1.7 billion.
If the deal goes ahead at a significant premium, it could approach the financial size of Salesforce's previous big acquisitions, such as the $14 billion acquisition of Tableau Software in 2019 and the $27 billion acquisition of Slack Technologies in 2021. , it is possible to exceed that.
Informatica's total enterprise value, including debt, is over $12 billion.