Enterprise data management company Informatica stated on Monday that it’s not in talks to be bought after earlier reports suggested Salesforce was interested in a deal worth about $10 billion.
Informatica’s stock dropped over 7% on this news, while Salesforce’s rose about 1%. If the acquisition had happened, it would have been Salesforce’s biggest since buying Slack in 2021.
Negotiations fell apart when the two sides couldn’t agree on terms, as reported by The Wall Street Journal. Sources familiar with the matter said Salesforce was considering a bid in the mid-$30s per share.
“Our business fundamentals continue to be very strong, and we look forward to discussing our first-quarter financial results and outlook on May 1,” said Informatica CEO Amit Walia in a statement.
Informatica’s two biggest shareholders, Canada’s Pension Plan and private equity firm Permira, own more than 75% of the shares and would have had to approve any deal. Salesforce investors also didn’t like the idea, causing shares to drop over 7% when news of the potential purchase came out.
Salesforce CEO Marc Benioff’s strong interest in mergers and acquisitions led to activists trying to curb the company’s spending in 2023.
Elliott Management, Inclusive Capital, Starboard Value, and ValueAct had been pushing for changes at the enterprise software company.
In response, Salesforce dissolved its M&A board committee and focused on rehiring former employees. It also made significant job cuts. Additionally, Benioff brought in Mason Morfit from ValueAct to join the board.
The rumored talks suggest that Salesforce might be warming up to mergers and acquisitions, wrote Gordon Haskett analyst Don Bilson in a note on Monday.
“Since early last year, Benioff has been avoiding major M&A deals, but this situation indicates he might be open to smaller deals,” Bilson wrote.
