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Key Takeaways
- Informatica will not be sold to Salesforce, the company said Monday, after negotiations around a roughly $10 billion deal reportedly faltered.
- Earlier this month, The Wall Street Journal reported that the sides were in “advanced talks” on an acquisition.
- However, Informatica said Monday the company “is not currently engaged in any discussions to be acquired.”
- Informatica stock dropped sharply following the announcement, while Salesforce shares were slightly higher Monday.
Data management company Informatica (INFA) is officially off the market, it said Monday, after negotiations with Salesforce (CRM) reportedly fell apart.
Earlier this month, The Wall Street Journal reported that the companies were in “advanced talks” on a deal that would have led to Salesforce acquiring Informatica for about $10 billion. However, on Sunday the Journal reported that the talks had fallen apart after the sides could not agree on terms.
On Monday, Informatica released a statement saying it “is not currently engaged in any discussions to be acquired,” despite its policy of not commenting on market rumors or media reports.
“Our business fundamentals continue to be very strong and we look forward to discussing our first-quarter financial results and outlook on May 1,” Informatica Chief Executive Officer (CEO) Amit Walia said in the statement.
The company also gave other updates on its business, including projections that first-quarter revenue and some other financial metrics would be at the higher end of the ranges Informatica gave in a February earnings report. Informatica also announced the departure of Chief Product Officer Jitesh Ghai, who is resigning for an opportunity at another company.
Informatica shares were down 8.7% at $32.12 as of 12:25 p.m. ET Monday, while Salesforce was up 0.9% to $272.80.