Salesforce Acquires Informatica in $8 Billion Deal to Enhance AI and Data Management

Salesforce, the San Francisco-based leader in customer relationship management (CRM) software, announced on May 27, 2025, its agreement to acquire cloud data management company Informatica for approximately $8 billion. This strategic move aims to bolster Salesforce's data management capabilities and accelerate its integration of artificial intelligence (AI) across its suite of business tools.

Under the terms of the deal, Salesforce will pay $25 per share in cash for all outstanding shares of Informatica's Class A and Class B-1 common stock. This represents an 11% premium over Informatica's closing price of $22.55 on the previous trading day. The transaction has been approved by the boards of both companies and is expected to close early in Salesforce's fiscal year 2027, pending regulatory approvals.

Marc Benioff, Salesforce's Chair and CEO, emphasized the transformative potential of the acquisition, stating, "Together, Salesforce and Informatica will create the most complete, agent-ready data platform in the industry." This sentiment was echoed by Robin Washington, President and Chief Operating and Financial Officer at Salesforce, who noted, "This proposed acquisition will be a key enabler for Salesforce’s next phase of AI-driven growth."

Informatica, headquartered in Redwood City, California, specializes in cloud data management and integration. The company's platform enables organizations to manage, integrate, and govern data across various environments, supporting data-driven decision-making and operations. Informatica was taken private in 2015 by private equity firm Permira and the Canada Pension Plan Investment Board for approximately $5.3 billion and returned to public trading in 2021.

The acquisition is set to enhance Salesforce's AI and data management capabilities by integrating Informatica's data governance and management services with Salesforce's existing platforms, including Data Cloud, MuleSoft, and Tableau. This integration aims to create a comprehensive, agent-ready data platform, supporting AI functionalities such as Salesforce's Agentforce platform, which enables businesses to automate tasks through virtual AI agents.

Financially, Salesforce plans to fund the acquisition through a combination of cash on hand and new debt. The company anticipates achieving accretion on a non-GAAP operating margin, non-GAAP earnings per share, and free cash flow basis starting in the second year following the expected closing of the transaction. This is expected to be driven by substantial cost synergies and revenue uplift from the new comprehensive data portfolio.

This acquisition positions Salesforce to compete more aggressively with other enterprise giants such as Microsoft, Oracle, and Google Cloud, all of whom are investing heavily in AI and data infrastructure. By acquiring Informatica, Salesforce gains immediate access to a mature data platform, accelerating its time-to-market for data-centric AI products and strengthening its ability to upsell to existing CRM clients.

However, the deal may face antitrust scrutiny due to functional overlap with Salesforce’s existing MuleSoft platform. The combined entity would control a significant portion of the enterprise data orchestration market share, potentially triggering regulatory reviews. Additionally, Salesforce must navigate Informatica’s hybrid SaaS/on-premise support model while accelerating cloud migrations, which could pose operational complexities.

The integration of Informatica's data management capabilities is expected to enhance Salesforce's AI offerings, potentially leading to more efficient and automated business processes for its clients. This could result in increased productivity and innovation across various industries. However, it also raises considerations regarding data privacy and security, as the consolidation of data management tools may concentrate sensitive information within a single platform.

Informatica CEO Amit Walia expressed optimism about the acquisition, stating, "We have a shared vision for how we can help organizations harness the full value of their data in the AI era." This sentiment reflects the strategic alignment between the two companies in leveraging data and AI to drive business transformation.

As the transaction progresses toward completion, the tech industry will be closely watching how Salesforce integrates Informatica's capabilities to enhance its AI-driven offerings and maintain its competitive edge in the rapidly evolving enterprise software market.