Salesforce Acquires Informatica for $8 Billion to Enhance AI Capabilities

Salesforce, the San Francisco-based customer relationship management (CRM) giant, announced on May 27, 2025, its agreement to acquire cloud data management company Informatica for approximately $8 billion. Informatica shareholders will receive $25 per share in cash, representing an 11% premium over the previous closing price. The acquisition has been approved by both companies' boards and is expected to close early in Salesforce's fiscal year 2027, pending regulatory approvals and customary closing conditions.

This strategic acquisition aims to bolster Salesforce's data management capabilities, supporting its push into artificial intelligence (AI) and data-driven services. By integrating Informatica's advanced data governance and management services with its existing platforms—Data Cloud, MuleSoft, and Tableau—Salesforce plans to build out its Agentforce enterprise AI automation hub. This integration is expected to create a comprehensive, agent-ready data platform, enabling businesses to automate tasks through virtual AI agents.

Marc Benioff, Chair and CEO of Salesforce, emphasized the strategic importance of the acquisition, stating, "Together, Salesforce and Informatica will create the most complete, agent-ready data platform in the industry." Amit Walia, CEO of Informatica, highlighted the alignment of both companies' visions, noting, "We’re partners, so we know each other’s value and strength. It all just came together at the right time."

The transaction will be funded through a combination of cash on Salesforce’s balance sheet and new debt. Salesforce expects the acquisition to be accretive to its non-GAAP operating margin, non-GAAP earnings per share, and free cash flow starting in the second year following the expected closing of the transaction. Following the announcement, Informatica's stock rose by 5.7%, while Salesforce shares also saw a slight increase.

The deal may face antitrust scrutiny due to functional overlap with Salesforce’s existing MuleSoft platform. The combined entity would control an estimated 38% of the enterprise data orchestration market share, potentially triggering regulatory review.

This acquisition reflects a broader industry trend of technology giants leveraging AI-focused acquisitions to consolidate their market positions. By merging these two software companies, a new wave of innovation is set to ripple through the enterprise solutions market, potentially reshaping how businesses handle data-driven insights.

Informatica, established in 1993 and headquartered in Redwood City, California, specializes in enterprise cloud data management and data integration. The company was taken private in 2015 for $5.3 billion and returned to public trading in 2021. Informatica's products include data warehousing tools, extract, transform, load (ETL) tools, and big data tools.

Salesforce, founded in 1999, is a leading CRM platform that offers a suite of enterprise applications focused on customer service, marketing automation, analytics, and application development. The company has a history of strategic acquisitions to enhance its service offerings, including the purchase of MuleSoft in 2018 for $6.5 billion, Tableau in 2019 for $15.7 billion, and Slack Technologies in 2021 for nearly $28 billion.

This acquisition signifies a more cautious and strategic M&A approach under CEO Marc Benioff, following pressure from activist investors and a refocus on profitability. By integrating Informatica's capabilities, Salesforce aims to enhance its AI-driven services and 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.

As the deal progresses, the industry will be watching closely to see how Salesforce integrates Informatica's services and navigates potential regulatory challenges. The success of this acquisition could set a precedent for future AI-focused mergers and acquisitions in the technology sector.