Salesforce has announced its acquisition of cloud data management company Informatica for approximately $8 billion, marking its largest purchase since the $27.7 billion acquisition of Slack Technologies in 2021. Under the agreement, Informatica shareholders will receive $25 per share, representing a 30% premium over the closing price on May 22, 2025. The transaction has been approved by both companies' boards and is expected to close early in Salesforce’s fiscal 2027.

Founded in 1993 and headquartered in Redwood City, California, Informatica specializes in enterprise cloud data management and data integration. The company was taken private in 2015 by private equity firm Permira and the Canada Pension Plan Investment Board for about $5.3 billion and went public again in 2021. As of 2024, Informatica reported an annual recurring revenue (ARR) of approximately $1.6 billion, with its cloud subscription ARR surging by 37% year-over-year to $617 million.

This acquisition aims to enhance Salesforce's data management and AI capabilities, particularly in sectors such as healthcare, life sciences, financial services, and the public sector. By integrating Informatica's data integration products, such as Informatica PowerCenter, Salesforce intends to improve the quality and accessibility of data used across its platforms. This move aligns with Salesforce's strategy to embed generative AI deeper into its products, as Informatica's tools can help ensure data quality and accessibility, which are critical for effective AI applications.

Following the announcement, Salesforce shares saw a slight uptick, while Informatica's stock rose by 5.7%. Analysts view the acquisition as a strategic fit for Salesforce's focus on Data Cloud and AI initiatives. However, the deal may face antitrust scrutiny due to functional overlaps with Salesforce’s existing MuleSoft platform, which also operates in data integration areas.

This acquisition marks Salesforce's largest since its nearly $28 billion purchase of Slack Technologies in 2021, signaling a return to major mergers and acquisitions after a period of restraint influenced by pressure from activist investors to enhance profitability. In 2019, Salesforce acquired Tableau Software for $15.7 billion to strengthen data visualization and analytics capabilities, and in 2018, it bought MuleSoft for $6.5 billion to improve data integration services.

Informatica CEO Amit Walia emphasized the deal's alignment with the company's vision to unlock the power of data in the AI era. "Joining forces with Salesforce represents a significant leap forward in our journey to bring data and AI to life by empowering businesses with the transformative power," Walia said.

The acquisition is expected to significantly enhance Salesforce's data management capabilities, particularly in integrating and managing data across various platforms. This move aligns with Salesforce's strategy to embed generative AI deeper into its products, as Informatica's tools can help ensure data quality and accessibility, which are critical for effective AI applications.

However, the deal may face antitrust scrutiny due to functional overlaps with Salesforce’s existing MuleSoft platform, which also operates in data integration areas. The acquisition is expected to close early in Salesforce’s fiscal 2027, pending regulatory approvals.