Informatica, a leading data management company, has announced that it is not engaged in any merger discussions with Salesforce. This news caused INFA stock to plummet while Salesforce’s stock wavered. On Monday, Informatica stated that it expects revenue and operating income for the quarter ending March 31 to be in the upper half of guidance. The company also announced that Jitesh Ghai, executive vice president and chief product officer, is resigning to pursue an executive opportunity at another company.
Salesforce had been reportedly eyeing an acquisition of Informatica for around $10 billion. However, on Monday, Salesforce’s stock fluctuated between modest gains and losses as reports emerged that the company was looking for a merger partner. Activist investors had been pressuring Salesforce to improve profit margins in 2022 and avoid acquisitions. Earlier in 2023, Salesforce disbanded a panel exploring mergers and acquisitions, indicating that it will not pursue big deals for now.
Informatica helps companies manage data in both the cloud and on-site, and recently introduced artificial intelligence tools. Meanwhile, Salesforce’s stock has seen a 3% increase in 2024 with Monday’s gain. For more updates on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on Twitter @reinhardtk_tech.
