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.



Tencent Finds New Hit in ‘Dungeon and Fighter’ Mobile Game After Dry Spell 

The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken March 19, 2024. (Reuters) 
The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken March 19, 2024. (Reuters) 
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Tencent Finds New Hit in ‘Dungeon and Fighter’ Mobile Game After Dry Spell 

The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken March 19, 2024. (Reuters) 
The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken March 19, 2024. (Reuters) 

Chinese internet giant Tencent Holdings' mobile game "Dungeon and Fighter" was the top-selling app on Apple's App Store in China this week, surpassing the company's existing flagship games after it spent years looking for a new marquee title.

The side-scrolling action game, developed by South Korea's Nexon and published by Tencent, became the top-selling app in China hours after it was launched on May 21 and it has stayed there since, according to app tracking platform Appmagic.

Tencent's "Honor of Kings" and "Peacekeeper Elites" have long been China's most popular games but they have recently shown signs of declining revenue as their popularity ebbed.

Globally, "Dungeon and Fighter" mobile ranked as the world's second top-selling app last week, only behind short video platform TikTok and ahead of Honor of Kings and YouTube, which came in third and fourth, according to Appmagic.

The video game is estimated to have earned more than $40 million in revenue on Apple devices after receiving over 2.4 million downloads, according to Appmagic.

Robin Zhu, senior analyst at Bernstein, said that Appmagic's number aligns with data recorded by another app tracking firm called Sensor Tower.

But he said that the game actually makes more money because the $40 million figure was only Tencent's and Nexon's cut, excluding Apple's share of the revenue.

"Gross billings-wise, the Sensor Tower data suggests you're looking at 1.2 to 1.5 billion yuan ($206.95 million) of receipts since launch," he said. Gross billing refers to the gross amount that users have spent on the game.

He said that "Dungeon and Fighter" mobile's strong performance is on track to meet Nexon's expectation of 3 billion yuan in gross billings during the game's first month of launch.

Officially named "Dungeon and Fighter: Origin", the game is a mobile adaptation of the "Dungeon and Fighter" computer game, one of the world's most profitable computer games which Tencent also publishes.

The game, under development for seven years, was released in South Korea in 2022 and became an instant hit. But its China release was delayed after the government cracked down on the gaming industry between 2018 and 2022.