Salesforce plans $8 billion deal to buy Informatica amid rising AI market competition | Company Business News-OxBig News Network

Cloud-based software company, Salesforce, on Tuesday, 27 May 2025, announced its plans to acquire Informatica for nearly $8 billion as the firm is focusing on improving its competitive advantage in the booming artificial intelligence (AI) industry, reported the news agency Reuters. 

Salesforce aims to leverage the company’s data management platform to fuel its AI expansion goals. This announcement comes after last year’s failed attempt at an agreement for a potential acquisition, as both companies did not agree to the terms of the deal, as per the report.

Acquiring Informatica will be Salesforce‘s biggest deal since its $28 billion acquisition of Slack Technologies in 2021. The company also aims to tighten its control over how business data is managed and used, incorporating generative AI into its products.

“Salesforce and Informatica will create the most complete, agent-ready data platform in the industry,” Salesforce CEO Marc Benioff told the news agency, highlighting that the deal aims to strengthen the company’s position in a data-enterprise market valued at more than $150 billion. 

$8 billion deal details

According to the news agency’s report, Salesforce is paying $25 for every share of Informatica, which marks a 30 per cent premium compared to the closing price on 22 May 2025. This was the date before the talks renewed about the potential deal.

The software major is expected to close the deal in the next financial year, starting in February, as they seek to fund it through both cash and new debt funding sources. According to the agency report, the deal is expected to boost Salesforce’s operating margins from the second year since closing.

“Data management software is now most often sold as part of mega-vendor tool kits,” Scotiabank analysts told the news agency, emphasising that the acquisition may help Salesforce to catch up with the industry rivals.

Salesforce shares are trading 0.34 per cent higher at $273.68 after the US stock markets opened post a long weekend due to Memorial Day holiday on Monday, compared to $273.13 in the previous market close.

Informatica shares jumped 5.68 per cent and are trading at $23.83 as of 9:33 a.m. (EDT), compared to $22.55 at the previous US stock market session.

AI Agent Programme

According to the agency report, the company is offering AI agents which can handle routine work without any human supervision. The company is using these agents in specific use-cases, like recruiting and customer service for its clients.

Salesforce has closed more than 1,000 paid deals for “Agentforce”, its AI agent platform, which serves as a virtual representative for humans, as per the agency report.