Salesforce has abandoned its pursuit of Informatica, a data-management software firm, as the two companies failed to reach an agreement on terms, according to a source familiar with the matter speaking to Reuters on Sunday.
Earlier in April, talks between Salesforce and Informatica had reached an advanced stage, Reuters reported. Had a deal been struck, it would have marked one of Salesforce’s most significant acquisitions.
Neither Salesforce nor Informatica immediately responded to Reuters’ requests for comment.
The Wall Street Journal reported that Salesforce had been discussing a price for Informatica in the mid-$30s per share. However, talks between the two companies have now stalled. Informatica’s shares were trading at $38.48 when news of the deal talks first emerged on April 12. However, they closed at $35.19 on Friday, valuing the Redwood City, California-based company at approximately $11.2 billion, including debt.
Established in 1993, Informatica provides subscription-based data management services over the cloud, serving more than 5,000 active customers. Among Informatica’s clients are Unilever and Deloitte, according to the company’s website.
In early 2023, Salesforce’s dealmaking strategy faced criticism from activist investors, including ValueAct Capital and Elliott Management, who questioned the company’s approach and pushed for changes.
In response, Salesforce initiated cost-cutting measures, increased share buybacks, and disbanded its mergers and acquisitions board committee.
Throughout its history, Salesforce has been active in acquiring smaller rivals. In 2019, it acquired data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion. A year later, Salesforce agreed to purchase workplace messaging app Slack Technologies for nearly $28 billion, making it the company’s largest acquisition to date.