Amid reports that Salesforce was eyeing an acquisition, Informatica on Monday said it's not engaged in any merger discussions. INFA stock tumbled on the announcement while Salesforce stock wavered.
Also, data management software maker Informatica says it expects revenue and operating income for the quarter ending March 31 to be in "the upper half of guidance." Informatica said Jitesh Ghai, executive vice president and chief product officer is leaving. The company says he "is resigning to pursue an executive opportunity at another company."
The Wall Street Journal in mid-April reported that Salesforce and Informatica were negotiating a deal for about $10 billion.
On the stock market today, Salesforce stock alternated between modest gains and losses. INFA stock fell 8.7% to 32.14.
Salesforce Stock Declines As M&A Takes Breather
Salesforce stock fell after the report came out that it was looking for a merger partner. Activist investors in 2022 pressed Salesforce to improve profit margins. They also urged it to avoid acquisitions. Salesforce in early 2023 disbanded a panel to explore mergers and acquisitions. It implied at the time it won't make more big deals for now.
In addition, Informatica helps companies manage data in the cloud and on site. It recently rolled out artificial intelligence tools.
Meanwhile, Salesforce stock has climbed 3% in 2024 with Monday's gain.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
