Salesforce Strikes $8 Billion Deal to Acquire Informatica, Marking Bold AI-Focused Comeback in M&A

On Tuesday, May 27, 2025, Salesforce confirmed it is acquiring cloud data management company Informatica in a $8 billion deal, marking a significant step in its strategy to strengthen its artificial intelligence (AI) portfolio.

Market Reactions to the Announcement

Following the news, Salesforce shares closed over 1% higher. Informatica stock also surged by 6% as investor sentiment responded positively to the development.

Strategic Vision Behind the Deal

“Truly autonomous, trustworthy AI agents need the most comprehensive understanding of their data,” said Steve Fisher, Salesforce president and chief technology officer, in a statement.

“The combination of Informatica’s advanced catalog and metadata capabilities with our Agentforce platform delivers exactly this.”

According to the release, Informatica shareholders holding Class A and Class B-1 common stock will receive $25 in cash per share under the agreement.

Background and Deal Structure

Reports of ongoing talks first emerged last Friday via Bloomberg, prompting a 17% spike in Informatica’s stock. Salesforce revealed that it will fund the acquisition using a mix of existing cash and newly raised debt.

Salesforce, known for its customer relationship management software, will integrate Informatica’s data catalog, privacy, governance, integration, and overall data management tools with its AI-powered Agentforce platform.

Salesforce’s History of Strategic Acquisitions

This purchase adds to Salesforce’s record of major acquisitions. The company acquired Slack in 2021 for $27.7 billion, Tableau in 2019 for $15.7 billion, and MuleSoft in 2018 for $6.5 billion.

These moves align with Salesforce’s goal of expanding its product suite and increasing its competitive edge in the software market.

Salesforce CEO Marc Benioff stated on Tuesday that the company plans to use Informatica alongside Data Cloud, MuleSoft, and Tableau to “enable autonomous agents to deliver smarter, safer, and more scalable outcomes for every company.”

Reuters Confirms Strategic Shift

As reported by Reuters, Salesforce’s focus is to strengthen its standing in the fast-growing AI market by leveraging Informatica’s robust data management capabilities.

This announcement comes after a previous failed attempt to finalize a deal last year when both companies could not agree on terms.

This will be Salesforce’s largest acquisition since purchasing Slack Technologies in 2021. The company’s leadership aims to gain tighter control over business data and enhance its integration of generative AI technologies into existing software products.

“Salesforce and Informatica will create the most complete, agent-ready data platform in the industry,” said Marc Benioff. The acquisition is expected to solidify Salesforce’s position in the enterprise data market, which is valued at over $150 billion.

Financial Terms and Deal Timeline

Salesforce will pay $25 per Informatica share, representing a 30% premium compared to the closing price on May 22, 2025, the day before talks between the two companies resumed. The transaction is expected to close in the next fiscal year, which begins in February.

The funding will be sourced from a mix of cash and new debt, according to company statements. Analysts expect the deal to improve Salesforce’s operating margins beginning in the second year after completion.

Analyst Insights and Industry Impact

Scotiabank analysts noted that data management tools are now often included in broader enterprise software packages offered by large vendors. They believe this acquisition could help Salesforce better compete with other industry giants in the AI and data services space.

Salesforce shares traded at $273.68, up 0.34% from the previous session’s close of $273.13. Informatica shares also rose 5.68% to $23.83 as of 9:33 a.m. EDT, compared to $22.55 at the last market close.

Agentforce and the Future of AI Automation

According to reports, Salesforce is actively offering AI agents capable of performing routine tasks without human intervention. These AI agents are currently being used in recruitment and customer service scenarios for clients.

The company has already secured over 1,000 paid deals for its Agentforce platform, which functions as a virtual assistant, handling operational tasks on behalf of human users.

By combining Informatica’s data capabilities with the AI automation of Agentforce, Salesforce aims to deliver more intelligent, scalable, and secure solutions in an increasingly AI-driven enterprise landscape.