Informatica, a company that helps businesses manage data in the cloud and on-site, has announced that it is not engaged in any merger discussions with Salesforce (CRM). This news caused INFA stock to plummet while Salesforce stock wavered. Despite this, Informatica stated that it expects revenue and operating income for the quarter ending March 31 to be in the upper half of guidance. Additionally, Jitesh Ghai, executive vice president and chief product officer at Informatica, has resigned to pursue an executive opportunity at another company.
On Monday, Salesforce’s stock fluctuated between modest gains and losses on the stock market while INFA’s stock price fell 8.7% to $32.14. The Wall Street Journal reported earlier in April that Salesforce and Informatica were negotiating a deal worth approximately $10 billion. However, following reports that Salesforce was looking for a merger partner with activist investors pushing them to improve their profit margins in 2022 and avoid acquisitions, the company disbanded a panel exploring mergers and acquisitions early in 2023. This suggests that for now, Salesforce will not be pursuing large deals.
Informatica offers solutions for managing data both in the cloud and on-site and has recently introduced artificial intelligence tools. On the other hand, Salesforce’s stock has increased by 3% so far in 2024 with Monday’s gain. For more updates on artificial intelligence, cybersecurity, and cloud computing, you can follow Reinhardt Krause on Twitter @reinhardtk_tech.
