Highlights:

  • Investors reacted negatively to the initial announcement of the advanced discussions, sending Salesforce’s shares plummeting seven percent on April 12.
  • With over 5,000 active customers, Informatica counts massive companies like professional services network Deloitte and consumer goods business Unilever PLC among its clientele.

Salesforce will not acquire Informatica Inc., a data management company. The company plans to abandon the deal worth USD ten billion.

Salesforce confirmed in a recently released statement that it was not in talks to acquire Informatica despite earlier media reports implying that it was. The renowned media house revealed earlier this month that the two businesses were in advanced discussions to proceed with a purchase.

According to reports published recently, the negotiations broke down because the two corporations couldn’t agree on a contract.

Investors reacted negatively to the initial announcement of the advanced discussions, sending Salesforce’s shares plummeting seven percent on April 12.

Founded in 1993, Informatica offers big businesses a platform for managing and processing data that leverages artificial intelligence to help handle, merge, and combine data from many sources. The company provides tools and solutions for ingesting and analyzing data to help customers make wise decisions regarding customer records, sales numbers, market trends, and other topics. The business unveiled Claire, a generative AI tool of its own, in the AI space.

With over 5,000 active customers, Informatica counts massive companies like professional services network Deloitte and consumer goods business Unilever PLC among its clientele.

This acquisition would have been Salesforce’s most extensive since the USD 27.7 billion deal in 2021 for the messaging and productivity platform Slack Technologies Inc. Informatica’s stock dropped by almost seven percent in early trading, with a USD 11.2 billion market value. On the announcement, Salesforce shares increased by roughly one percent.

Chief Executive of Informatica, Amit Walia, said, “Our business fundamentals continue to be very strong, and we look forward to discussing our first-quarter financial results and outlook on May 1.”

Salesforce has a history of purchasing companies to support its expansion, even if the Slack acquisition was noteworthy for its magnitude. Two such companies include Tableau Inc., a provider of visual analytics platforms, and MuleSoft Inc., an enterprise software integration firm.