Salesforce CRM announced on May 27, 2025, that it will acquire Informatica INFA in a deal valued at approximately $8 billion. This strategic move marks Salesforce’s return to major acquisitions as it seeks to enhance its competitive position in the rapidly growing artificial intelligence (AI) space.
Salesforce has agreed to pay $25 per Informatica share, representing a 30% premium over Informatica's closing price on May 22, 2025 the day before news of renewed negotiations surfaced. Following the announcement, Informatica shares rose 6.1% on May 27, 2025 while Salesforce shares climbed 1.5%.
Salesforce-heavy ETFs like iShares Expanded Tech-Software Sector ETF IGV, REX FANG & Innovation Equity Premium Income ETF REX, First Trust Dow Jones Internet Index Fund FDN, FT Vest Dow Jones Internet & Target Income ETF FDND and AXS Esoterica NextG Economy ETF WUGI should get a boost from the deal.
Meanwhile, investor interest should increase in big data ETFs like ProShares Big Data Refiners ETF DAT. Although the DAT ETF has only a small allocation in Informatica, the overall outlook for big data development remains bullish.
Return to Big-Ticket M&A Amid Investor Pressure
The cloud software giant had previously paused large-scale acquisitions, following increased scrutiny from activist investors demanding stronger profitability. The acquisition of Informatica represents Salesforce’s biggest deal since it purchased Slack Technologies for nearly $28 billion in 2021.
Salesforce has a history of significant acquisitions, including the $15.7 billion purchase of Tableau Software in 2019 and the Slack deal in 2021. Talks between Salesforce and Informatica had been shelved last year due to disagreements over deal terms, but they have now reached an agreement.
Strengthening AI and Data Management Capabilities
With the Informatica acquisition, Salesforce aims to enhance its data management offerings, a critical component as it deepens its integration of generative AI into its product suite. Marc Benioff, CEO of Salesforce, emphasized the strategic value of the deal, stating, “Salesforce and Informatica will create the most complete, agent-ready data platform in the industry.” He added that the move would solidify Salesforce’s presence in the $150 billion-plus enterprise data market, as quoted on Reuters.
Boosting AI-Powered Offerings
Salesforce has been aggressively promoting its AI agent platform, "Agentforce," which enables businesses to automate routine tasks in areas like customer service and recruitment. The company has already secured over 1,000 paid deals for the platform, and the acquisition of Informatica is expected to further enhance its capabilities.
Expected Synergy From the Deal
The transaction, expected to close early in Salesforce’s next fiscal year beginning in February, will be financed through a combination of cash and new debt. Salesforce anticipates that the acquisition will begin contributing to operating margin improvements from the second year after the deal closes.
According to analysts at Scotiabank, the acquisition positions Salesforce to better compete with rivals (as quoted on Reuters), as data management tools are increasingly being bundled with larger enterprise software packages.
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Salesforce Inc. (CRM): Free Stock Analysis Report Informatica Inc. (INFA): Free Stock Analysis Report REX American Resources Corporation (REX): Free Stock Analysis Report First Trust Dow Jones Internet ETF (FDN): ETF Research Reports iShares Expanded Tech-Software Sector ETF (IGV): ETF Research Reports AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports ProShares Big Data Refiners ETF (DAT): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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