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Salesforce talks to buy Informatica fall through- reports

Published 04/21/2024, 08:57 PM
© Reuters
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Investing.com-- Salesforce Inc (NYSE:CRM) has failed to reach an agreement to take over data-management software firm Informatica Inc (NYSE:INFA) after the two could not agree to a price, reports from the Wall Street Journal and Reuters showed on Sunday.

The Wall Street Journal reported on Sunday that the two had failed to reach an agreement amid disagreements over the terms of the deal. A report from Reuters said that the two were unable to agree to a takeover price.

The reports come after news had broken earlier in April that enterprise software developer Salesforce was in talks to take over Informatica- a deal that would have ranked among Salesforce’s biggest acquisitions in recent years, after the firm acquired workplace messaging app Slack Technologies (NYSE:WORK) for $28 billion in 2021. 

As of April 19, Informatica has a market capital of $12.09 billion. The company more than doubled in value over the past year after it rolled out a slew of artificial intelligence tools across its corporate software products. 

Saleforce's stock was also sitting on a heady 33% jump over the past six months, as the firm incorporated AI into its own products. A takeover of Informatica would have allowed Salesforce to fold Informatica's offerings into its own suite of products, while also giving Salesforce access to Informatica's large pool of clients, which include consumer goods giant Unilever PLC (NYSE:UL), major automaker Toyota (NYSE:TM) Motor (TYO:7203) and accounting major Deloitte.

Salesforce and Informatica’s stock prices had fallen in response to initial reports of a takeover.

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