Amit Walia, CEO of Informatica, New York Stock Exchange, October 27, 2021.
Source: New York Stock Exchange
Enterprise Data Management Company Informatics The company is not currently negotiating an acquisition explain On Monday, it was reported that sales force Interested in a deal worth approximately $10 billion.
Informatica shares fell more than 7% after the news broke, while Salesforce shares rose about 1%. The acquisition would be Salesforce’s largest acquisition since its acquisition of Slack in 2021.
The Wall Street Journal previously reported that talks broke down after the two sides failed to agree on terms. Salesforce has been discussing a bid of around $30 per share, people familiar with the matter told the Wall Street Journal.
“The fundamentals of our business remain very strong, and we look forward to discussing our first quarter financial results and outlook on May 1,” Informatica CEO Amit Walia said in a statement.
Informatica’s two largest shareholders, the Canada Pension Plan Corporation and private equity firm Permira, control more than 75% of outstanding shares, so any deal must be approved. Salesforce investors also reacted negatively to the idea of a deal, with Salesforce shares falling more than 7% when news of the potential acquisition first broke.
Salesforce Chief Executive Marc Benioff’s voracious appetite for mergers and acquisitions is one of the factors attracting many activists in 2023 trying to rein in the company’s spending.
Salesforce Chairman and CEO Marc R. Benioff attended the 54th Annual Meeting of the World Economic Forum in Davos, Switzerland on January 18, 2024.
Dennis Balibus | Reuters
Elliott Management, Inclusive Capital, Starboard Value and ValueAct have all been working on changes at the enterprise software company.
Salesforce responded by disbanding its mergers and acquisitions board committee and shifting its focus to rehiring departing talent. It also implemented deep layoffs. Benioff also recruited ValueAct’s Mason Morfit to the board.
Gordon Haskett analyst Don Bilson wrote in a note on Monday that the rumored talks suggest Salesforce’s aversion to mergers may be easing.
“Benioff has been on a diet of not making any meaningful acquisitions since early last year, and this episode tells us he’s ready for a snack,” Bilson wrote.
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