Software company Salesforce said Tuesday it’s buying Informatica, which provides businesses with artificial-intelligence-powered data management tools, for $8 billion.
The acquisition, one of Salesforce’s largest purchases, underscores how Bay Area companies are investing heavily in AI as they race to advance technology.
San Francisco-based Salesforce helps businesses manage sales and customer data. The company said in a news release that the acquisition of Informatica, headquartered in Redwood City, will boost its efforts to deploy AI agents that can perform tasks without human oversight.
Salesforce runs a data platform known as Data Cloud and owns software companies Mulesoft and Tableau, a data visualization platform.
“By uniting the power of Data Cloud, MuleSoft, and Tableau with Informatica’s industry-leading, advanced data management capabilities, we will enable autonomous agents to deliver smarter, safer, and more scalable outcomes for every company, and significantly strengthen our position in the $150-billion-plus enterprise data market,” said Marc Benioff, chairman and chief executive of Salesforce, in a statement.
Informatica pointed to certain benefits the acquisition will provide Salesforce, including tools that show where data come from and how that information is changed or used, transparency that is important for complying with government regulations. The company works with industries including retail, government, higher education and financial services.
“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 of their most critical asset — their data,” said Amit Walia, chief executive of Informatica, in a statement.
As part of the deal, Salesforce will pay Informatica shareholders $25 in cash per share.
The share price marks a 30% premium over Informatica’s closing price on Thursday. Informatica has seen its shares plunge by as much as 59% since acquisition talks with Salesforce fell apart in 2024, Bloomberg reported.
Informatica has also seen its stock fall this year after its quarterly earnings reports. In May, the company’s share price fell after posting mixed results. While the company’s earnings per share were below Wall Street’s expectations, Informatica’s first-quarter revenue reached nearly $404 million, up roughly 4% compared to the same period last year.
Salesforce’s and Informatica’s shares increased Tuesday after the companies announced the acquisition. Salesforce’s stock closed up 1.5% at $277.19 per share. Informatica’s stock closed up 6% at $23.91 per share.