Informatica Stock Plunges in 2025 After $10 Billion Salesforce Buyout Talks Collapse
Informatica confirms no current acquisition talks with Salesforce, causing shares to drop sharply following the breakdown of a proposed $10 billion deal.
Highlights
- Informatica officially denies ongoing acquisition discussions with Salesforce after reported $10 billion deal negotiations fell through.
- Earlier reports from The Wall Street Journal indicated advanced talks between the two tech giants.
- The company emphasized strong business fundamentals and upcoming Q1 financial results scheduled for May 1.
- Following the announcement, Informatica shares dropped nearly 9%, while Salesforce shares edged slightly higher.
On Monday, Informatica (INFA), a leader in data management solutions, announced that it is no longer pursuing a sale to Salesforce (CRM) after talks surrounding an approximately $10 billion acquisition reportedly failed over the weekend.
The Wall Street Journal had previously reported that both companies were engaged in advanced negotiations. However, the discussions fell apart due to disagreements on deal terms.
Informatica’s official statement clarified, "The company is not currently engaged in any acquisition discussions," reaffirming its commitment to transparency despite its usual policy against commenting on market rumors.
CEO Amit Walia highlighted, "Our business fundamentals remain robust, and we anticipate sharing positive Q1 financial results and outlook on May 1." The company also projected first-quarter revenue to be at the higher end of previous guidance and announced the resignation of Chief Product Officer Jitesh Ghai, who is pursuing new opportunities.
Following this update, Informatica's stock price fell 8.7% to $32.12 as of midday trading, while Salesforce shares rose modestly by 0.9% to $272.80.
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