Software Giant Salesforce in Advanced Talks to Buy Informatica

FILE PHOTO: A banner celebrating the Informatica IPO on the front of the New York Stock Exchange (NYSE) in New York City, US, October 27, 2021.  REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A banner celebrating the Informatica IPO on the front of the New York Stock Exchange (NYSE) in New York City, US, October 27, 2021. REUTERS/Brendan McDermid/File Photo
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Software Giant Salesforce in Advanced Talks to Buy Informatica

FILE PHOTO: A banner celebrating the Informatica IPO on the front of the New York Stock Exchange (NYSE) in New York City, US, October 27, 2021.  REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A banner celebrating the Informatica IPO on the front of the New York Stock Exchange (NYSE) in New York City, US, October 27, 2021. REUTERS/Brendan McDermid/File Photo

Customer relations software maker Salesforce is in advanced talks to acquire Informatica, a person familiar with the matter told Reuters on Friday, in the latest sign of increased deal-making in the technology sector.
A deal could be announced soon, said the source, who requested anonymity as the discussions are confidential.
The price being discussed is below Informatica's current share price of $38.48, according to the Wall Street Journal, which first reported the talks between Salesforce and Informatica.
Salesforce and Informatica did not immediately respond to requests for comment.
Private equity firm Permira, which along with the Canadian Pension Plan Investment Board (CPPIB) holds a controlling stake of over 75% in Informatica, declined to comment. CPPIB could not be reached for comment.
Founded in 1993, Informatica offers subscription-based data management services over the cloud and also helps to automate tasks for more than 5,000 active customers.
Based in Redwood City, California, its customers include Unilever and Deloitte, according to its website.
Informatica's shares have risen nearly 43% so far this year, valuing the company at about $11.35 billion.
The company was taken private in 2015 for about $5.3 billion by a consortium that included Permira and CPPIB.
Six years later, Permira and CPPIB took Informatica public again and its shares were listed on the New York Stock Exchange.
If the deal goes through, it would be the biggest for Salesforce since it acquired workplace messaging app Slack Technologies in 2020 for nearly $28 billion.
Salesforce's dealmaking strategy came under scrutiny in early 2023, when activist investors, including ValueAct Capital and Elliott Management, questioned the company's strategy and pushed the management for changes.
In response, Salesforce implemented cost-cutting and increased share buybacks. It also disbanded its M&A board committee.
Salesforce has been a prolific acquirer. In 2019, it bought data analytics platform Tableau Software in an all-stock deal valued at $15.7 billion.
As part of the current enthusiasm for artificial intelligence sweeping through the technology sector, several large deals have been signed.
In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. Hewlett Packard Enterprise struck a deal in January to buy networking gear maker Juniper Networks for $14 billion.
Technology accounted for the largest share of merger and acquisitions during the first quarter, jumping more than 42% year-on-year to about $154 billion, according to Dealogic.



Taiwan Tech Giant Foxconn’s 2024 Profit Misses Forecasts 

The logo of Foxconn is on display during the Smart City Summit & Expo pre-event press conference in Taipei, Taiwan, 11 March 2025. (EPA)
The logo of Foxconn is on display during the Smart City Summit & Expo pre-event press conference in Taipei, Taiwan, 11 March 2025. (EPA)
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Taiwan Tech Giant Foxconn’s 2024 Profit Misses Forecasts 

The logo of Foxconn is on display during the Smart City Summit & Expo pre-event press conference in Taipei, Taiwan, 11 March 2025. (EPA)
The logo of Foxconn is on display during the Smart City Summit & Expo pre-event press conference in Taipei, Taiwan, 11 March 2025. (EPA)

Taiwanese tech giant Foxconn reported on Friday a lower-than-expected net profit for 2024 as consumer electronic gadgets underperformed, although demand for its artificial intelligence servers remained robust.

The world's largest contract electronics manufacturer has been moving beyond assembling devices such as Apple's iPhones into areas ranging from electric vehicles to AI servers.

The company said full-year net profit rose seven percent to NT$152.7 billion (US$4.6 billion).

That compares with an average forecast of NT$159.4 billion, according to a Bloomberg News survey of analysts.

Full-year revenue rose 11 percent to NT$6.9 trillion, beating the market forecast of NT$6.8 trillion.

Foxconn, also known as Hon Hai Precision Industry, has been riding a wave of global demand for generative AI in recent years.

The company reported a "strong performance" in its AI server business, with revenue up 150 percent, according to documents released ahead of an earnings call with analysts.

This year would be the "Year of AI", the company said, with shipments increasing in every quarter.

The earnings announcement comes as US President Donald Trump imposed tariffs against major trading partners including China, Canada and Mexico, igniting trade wars and causing markets to fall.

While Foxconn has plants around the world, the bulk of its operations is based in China, which has been hit by 20 percent levies on products shipped to the United States.

Foxconn is building a mega-AI server plant in Mexico, which a local official told Bloomberg recently would be completed in a year despite Trump's tariff threats.

The $900 million assembly plant near Guadalajara will become the world's largest to be powered by Nvidia's GB200 AI chips, Jalisco Governor Pablo Lemus Navarro said.

Foxconn has also been in the spotlight over potential cooperation with Japanese automaker Nissan after its merger talks with rival Honda fell through in February.

Chairman Young Liu said previously that Foxconn was open to buying French auto giant Renault's stake in Nissan and was looking into a cooperation with Nissan, not a merger.

Foxconn has been looking to expand into the Japanese EV market and Liu said last month the company would announce "good news" in EVs within one or two months.