Salesforce Buys Informatica for $8 Billion to Boost AI and Data Cloud Power
Salesforce has made its biggest move in years, buying Informatica for $8 billion. Here’s why this deal matters, what’s inside it, and what risks or opportunities it brings for the company’s future.
Salesforce Buys Informatica: A Bold Bet on AI and Data Management
Salesforce is no stranger to big acquisitions, but this $8 billion purchase of Informatica marks its largest deal since buying Slack back in 2021. With this move, Salesforce is aiming to supercharge its AI-driven products, expand its data management capabilities, and strengthen its position in the $150 billion-plus enterprise data market.
CEO Marc Benioff boldly called it a way to create “the most complete, agent-ready data platform in the industry.” That’s big talk — but does it hold up?
Why Salesforce Wants Informatica
Informatica specializes in cloud-based data integration, governance, and automation tools — basically, the software businesses use to wrangle and clean up their enormous data flows. This fits perfectly into Salesforce’s vision of creating “Agentforce,” a platform that uses AI-powered virtual agents for tasks like customer service and recruiting.
By bringing Informatica into the fold, Salesforce gains tighter control over the data pipelines feeding these AI agents, helping it deliver better, faster, and more reliable results.
The Price and the Players
Salesforce is paying $25 per Informatica share — a roughly 30% premium over its recent closing price — using a mix of cash and new debt. This isn’t a snap decision; in fact, Salesforce walked away from an Informatica deal in 2024 after failing to agree on terms. But after renewed talks and interest from other buyers like Thoma Bravo and Cloud Software Group, Salesforce jumped back in and sealed the deal.
Analysts say it’s a smart move, positioning Salesforce to compete better with other mega-vendors that bundle data management tools alongside their software suites.
Opportunities and Risks
This acquisition opens several new doors for Salesforce. First, it accelerates the growth of its Data Cloud business, tapping into Informatica’s massive ecosystem of enterprise clients (think Unilever, Deloitte, and others). Second, it improves Salesforce’s AI stack at a time when rivals like Microsoft, Google, and OpenAI are racing to dominate the enterprise AI market.
But there are challenges too. Some experts warn of potential regulatory scrutiny, especially since Informatica’s business overlaps with Salesforce’s MuleSoft unit. Plus, activist investors like ValueAct Capital and Elliott Management have already pressured Salesforce in the past to focus more on profitability and less on expensive acquisitions. With Informatica carrying $1.9 billion in debt, Salesforce will need to show clear financial benefits from this deal.
A History of Big Bets
This is hardly Salesforce’s first rodeo. In recent years, it has spent $15.7 billion on Tableau Software (2019) and nearly $28 billion on Slack (2021), marking some of the largest software deals in the industry. While those moves helped Salesforce expand its footprint, they also raised questions about integration challenges and long-term value.
Now, with Informatica, Salesforce is betting that bringing together AI and data management under one roof will deliver a powerful edge in a crowded, fast-evolving market.
What’s Next?
Salesforce expects to close the deal in early fiscal 2026. Once finalized, it plans to integrate Informatica’s tools quickly into Agentforce and Data Cloud, aiming to boost its operating margins within two years. As Salesforce’s rivals like Microsoft, Oracle, and Google ramp up their own AI and data offerings, this acquisition could determine whether Salesforce stays ahead or falls behind in the next big enterprise tech wave.
FAQs
Q: Why did Salesforce buy Informatica?
A: To expand its data management capabilities, improve its AI-powered tools, and stay competitive in the enterprise software and AI market.
Q: How much is the deal worth?
A: About $8 billion, or $25 per share, a roughly 30% premium on Informatica’s recent stock price.
Q: Will this acquisition face challenges?
A: Possibly. There’s potential regulatory scrutiny, debt concerns, and pressure from activist investors to ensure it improves profitability.
