Customer relationship software maker Salesforce is in advanced talks to acquire Informatica, people told Reuters on Friday, the latest sign of more deals in the technology sector.
The person, who requested anonymity because the negotiations are confidential, said a deal could be announced soon.
According to the Wall Street Journal, which first reported on the talks between Salesforce and Informatica, the price being discussed is below Informatica’s current stock price of $38.48.
Salesforce and Informatica did not respond to requests for comment.
Private equity firm Permira, which together with the Canada Pension Plan Investment Board own a controlling stake of more than 75% in Informatica, declined to comment. CPPIB could not be reached for comment.
Founded in 1993, Informatica provides subscription-based data management services on the cloud and also helps more than 5,000 active customers automate tasks.
The Redwood City, Calif.-based company’s customers include Unilever and Deloitte, according to its website.
Informatica’s stock price has risen nearly 43% so far this year, valuing the company at about $11.35 billion.
The company was taken private in 2015 by a consortium that included Permira and CPPIB for about $5.3 billion.
Six years later, Permira and CPPIB took Informatica public again, and its stock was listed on the New York Stock Exchange.
If completed, the deal would be Salesforce’s largest since its acquisition of workplace messaging app Slack Technologies in 2020 for about $28 billion.
Salesforce’s trading strategy came under intense scrutiny in early 2023, when activist investors including ValueAct Capital and Elliott Management questioned the company’s strategy and called for changes to management.
In response, Salesforce implemented cost reductions and increased stock buybacks. The M&A board committee was also disbanded.
Salesforce has made a number of acquisitions. In 2019, it acquired data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
Several major contracts have been signed as part of the current enthusiasm for artificial intelligence spreading across the technology sector.
In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. In January, Hewlett Packard Enterprise signed a deal to acquire network equipment maker Juniper Networks for $14 billion.
Technology-related transactions accounted for the largest share of mergers and acquisitions in the first quarter, increasing more than 42% year-over-year to about $154 billion, according to Dealogic.
