Salesforce Inc. has agreed to acquire Informatica Inc. for $8 billion, one year after initial negotiations fell through. Following a significant decline in Informatica's market value, Salesforce's more disciplined approach to mergers and acquisitions was driven by investor pressure for fair pricing and cost efficiency. CEO Marc Benioff confirmed ongoing communication with Informatica’s leadership, leading to a deal that was 35% less than the initially discussed price. The deal marks Salesforce's return to making substantial acquisitions after facing investor skepticism regarding its M&A strategy.
Salesforce's acquisition of Informatica highlights a disciplined approach to dealmaking, emphasizing the importance of fair pricing and shareholder expectations in M&A strategy.
The agreement to buy Informatica for $8 billion reflects a change in Salesforce’s M&A strategy, shaped by shareholder demands and a commitment to cost reduction.
Let's say the initial negotiations a year ago did not work out due to price concerns. Now, Salesforce's perseverance has led them back to the table with a favorable deal.
Marc Benioff noted that the time was right for the purchase, which took place at a 35% discount from previous negotiations, showcasing strategic patience.
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