Salesforce has announced the acquisition of data management company Informatica for $8 billion.
The deal is expected to enhance the cloud-based software company’s services in the artificial intelligence market.
Why Salesforce is buying Informatica
The company said the deal will increase its data foundation, which will be critical to employ powerful and responsible AI agents.
Marc Benioff, Chair and CEO of Salesforce, said,
Together, Salesforce and Informatica will create the most complete, agent-ready data platform in the industry.
By uniting the power of Data Cloud, MuleSoft, and Tableau with Informatica’s industry-leading, advanced data management capabilities, we will enable autonomous agents to deliver smarter, safer, and more scalable outcomes for every company, and significantly strengthen our position in the $150 billion-plus enterprise data market.”
Salesforce is mainly engaged in customer relationship management software service.
It said it will combine Informatica’s data catalog, integration, governance, quality and privacy, metadata management, and MDM with its own platform, Agentforce.
Agentforce creates AI powered virtual representatives. The company has closed more than 1000 paid deals through this platform.
In the press release, Steve Fisher, President and Chief Technology Officer, Salesforce, said,
Truly autonomous, trustworthy AI agents need the most comprehensive understanding of their data. The combination of Informatica’s advanced catalog and metadata capabilities with our Agentforce platform delivers exactly this.
Imagine an AI agent that goes beyond simply seeing data points to understanding their full context — origin, transformation, quality, and governance. This clarity, from a unified Salesforce and Informatica solution, will allow all types of businesses to automate more complex processes and make more reliable AI-driven decisions.”
How much is Salesforce paying for Informatica?
Salesforce is buying Informatica for $8 billion. Under the deal, the class A and B1 shareholders of Informatica will receive $25 per share in cash from Salesforce.
The transaction is expected to be closed in FY2027, subject to necessary regulatory approvals and other closing conditions.
The San Francisco-based company said the transaction would be funded through a combination of cash and new debt.
The company expects improvement in cash flow, earnings per share, and operating margin from the second year after closing the transaction.
It cites increased revenue from their new data portfolio and cost synergies after the acquisition for this prediction.
Salesforce’s past acquisitions
Informatica adds to Salesforce’s long list of acquisitions. Salesforce previously bought Mulesoft for $6.5 billion in 2018 and Tableau Software in 2019 for $15.7 billion.
In 2021, it acquired Slack Technologies for $27.7 billion.
The deal is a return to the company’s merger and acquisition streak. Activist investors like ValueAct Capital and Elliott Management pressured the company in 2023 for the deals.
They had pressed the company to improve its profitability.
Salesforce is expected to announce its first quarter results for fiscal year 2026 on May 28.
Informatica’s shares surged 5% on the market open on Tuesday. Salesforce’s shares, on the other hand, were up 0.17%.
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