By Anirban Sen
(Reuters) – Customer relations software maker Salesforce (NYSE ) is in advanced talks to acquire Informatica, a person familiar with the matter told Reuters on Friday, in the latest sign of a surge in deals in the sector. technological.
A deal could be announced soon, said the source, who requested anonymity as the discussions are confidential.
The price being discussed is below Informatica's current stock price of $38.48, according to the Wall Street Journal, which first reported on the talks between Salesforce and Informatica.
Salesforce and Informatica did not immediately respond to requests for comment.
Private equity firm Permira, which along with the Canadian Pension Plan Investment Board (CPPIB) owns a majority stake of more than 75% in Informatica, declined to comment. CPPIB could not be reached for comment.
Founded in 1993, Informatica offers cloud subscription-based data management services and also helps automate tasks for over 5,000 active customers.
Headquartered in Redwood (NYSE:) City, California, its clients include Unilever (LON:) and Deloitte, according to their website.
Informatica shares are up nearly 43% so far this year, valuing the company at about $11.35 billion.
The company was taken private in 2015 for about $5.3 billion by a consortium that included Permira and CPPIB.
Six years later, Permira and CPPIB took Informatica public again and its shares were listed on the New York Stock Exchange.
If the deal goes through, it would be the largest for Salesforce since it acquired workplace messaging app Slack Technologies (NYSE in 2020 for nearly $28 billion.
Salesforce's trading strategy came under scrutiny in early 2023, when activist investors including ValueAct Capital and Elliott Management questioned the company's strategy and pressured management to make changes.
In response, Salesforce implemented cost cuts and increased share buybacks. It also dissolved its board's mergers and acquisitions committee.
Salesforce has been a prolific acquirer. In 2019, it bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
As part of the current enthusiasm for artificial intelligence sweeping the technology sector, several major agreements have been signed.
In January, design software company Synopsys (NASDAQ:) agreed to buy smaller rival Ansys (NASDAQ:) for about $35 billion. Hewlett Packard Enterprise (NYSE:) reached a deal in January to buy networking equipment maker Juniper Networks (NYSE:) for $14 billion.
technology accounted for the majority of mergers and acquisitions during the first quarter, rising more than 42% year-over-year to around $154 billion, according to Dealogic.
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