Photo by Erwin Cachin
Salesforce announced on Tuesday that it will acquire data management firm Informatica in a deal valued at approximately $8 billion, marking a bold return to large-scale mergers and acquisitions. The move signals the cloud software giant’s ambition to strengthen its competitive stance in the rapidly expanding artificial intelligence (AI) sector.
The acquisition marks Salesforce’s largest deal since its $27.7 billion purchase of Slack Technologies in 2021 and comes after a period of M&A restraint prompted by pressure from activist investors demanding improved profit margins. Talks between Salesforce and Informatica had previously stalled last year due to disagreements over deal terms, but the companies have now reached a definitive agreement.
By acquiring Informatica, Salesforce aims to significantly enhance its data management capabilities—seen as a foundational element in the company’s strategy to advance AI integration across its product suite. The deal is expected to enable Salesforce to exert greater control over how enterprise data is collected, organized, and leveraged, a crucial step as it pushes deeper into generative AI.
“This acquisition creates the most comprehensive, agent-ready data platform in the industry,” said Salesforce CEO Marc Benioff, emphasizing that the move will solidify Salesforce’s standing in the global data enterprise market, valued at over $150 billion.
Salesforce has been increasingly investing in AI tools, including intelligent software agents that autonomously perform routine tasks in areas like recruitment and customer service. Its “Agentforce” platform, designed for deploying AI-powered virtual representatives, has already secured more than 1,000 paid customer deals.
As part of the agreement, Salesforce will pay $25 per share for Informatica, representing a roughly 30% premium to Informatica’s stock price on May 22, just before reports emerged about renewed acquisition talks. Following the announcement, Informatica shares rose 5.8% in premarket trading to $23.86, while Salesforce shares were up 1.2%.
The transaction is expected to close in Salesforce’s upcoming fiscal year, which begins in February. It will be financed through a combination of cash and newly issued debt. Salesforce projects that the acquisition will contribute to an increase in its operating margin starting in the second year post-closing.
Industry analysts, including those from Scotiabank, noted that the move could help Salesforce better compete with other software giants, as data management tools are increasingly bundled within broader enterprise software ecosystems.
Salesforce has a history of major acquisitions in the data and collaboration space, having purchased Tableau Software for $15.7 billion in stock in 2019 and Slack in 2021. However, those high-profile deals attracted intense scrutiny in 2023, when activist investors such as ValueAct Capital and Elliott Management began advocating for stronger profitability and operational efficiency.
