Salesforce Snaps Up Informatica In $8 Billion All-Stock Deal To Boost AI Strategy
REINHARDT KRAUSE08:55 AM ET 05/27/2025
Salesforce (CRM) on Tuesday said it has agreed to buy data-management software maker Informatica (INFA) in an all-stock deal valued at $8 billion. Salesforce stock climbed amid analyst views that the deal could boost the software maker's artificial intelligence strategy.
Salesforce agreed to buy Informatica for $25 per share, a much lower per-share price than speculated in April 2024 when reports said the companies were in negotiations.
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On the stock market today, Informatica stock rose more than 5% to 23.83 premarket. Informatica stock popped more than 17% on Friday after Bloomberg reported Salesforce had renewed negotiations with the software maker. Salesforce stock climbed nearly 1% to 275.44.
In April 2024, Salesforce reportedly was weighing an offer in the mid-$30s per share for Informatica. Further, Informatica stock hit a high near 40 on April 12, 2024.
Amid the rise of "generative" AI, companies aim to use proprietary company data to build and train AI models. Informatica's data management software helps companies collect data from different sources and classify and cleanse that data.
Also, Salesforce already offers Informatica products to its customers through a marketing partnership.
Informatica Cloud Business Key Asset
Jefferies analyst Brent Thill said in a report: "Salesforce is facing growing pressure to increase adoption of Agentforce, which Informatica could help with. As such, we believe a deal could make sense."
"With the rise of GenAI, many software companies are realizing the importance of data and distribution, especially as enterprises look to get their data estates in order," said RBC Capital analyst Rishi Jaluria in a report.
As of Friday's market close, Salesforce stock had retreated 17% in 2025. Informatica stock was down 11%.
Regulators would likely approve a Salesforce-Informatica deal, analysts say.
Meanwhile, Salesforce first quarter earnings are due on Wednesday.
In fiscal 2026, which starts with the current April quarter, some analysts have estimated a 1% revenue lift from artificial intelligence products for Salesforce stock. Overall, Salesforce revenue is projected to grow about 8% in fiscal 2026.
Shift To AI Agents
In late 2024, Salesforce and other software makers began shifting their marketing strategy away from generative AI "copilots" to autonomous, goal-driven AI "agents."
Copilots — basically conversational chatbot interfaces — aim to improve worker productivity but rely on human prompts. Agents execute multistep tasks on behalf of users by solving problems and taking action.
Salesforce introduced Agentforce at its Dreamforce customer conference in September 2024. In December, Salesforce announced an upgraded version, Agentforce 2.0, along with its "Digital Labor Platform."
Salesforce is among IBD's AI stocks to watch.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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