Informatica Goes Private in $5.3 Billion Buyout
Analysts say this private equity deal might be only one in a series of new capital IT market moves this spring.All the new data and files pouring from PCs, servers and mobile devices into enterprise on-site and cloud storage need to be orderly, uniform, deduplicated and ready for business access, if they're going to be worth anything. Efficiency at doing exactly that is what made Informatica a world player as one of the IT world's most prominent data cleanup and quality specialists. That proficiency is a major reason it was able to go private April 7 in a $5.3 billion buyout by private equity firms Permira Funds and Canada Pension Plan Investment Board. It is the largest U.S. leveraged buyout thus far this year. A competing bid by a partnership of Thoma Bravo LLC and Ontario Teachers' Pension Plan had been submitted to add some drama to the transaction. On the business side, Informatica shareholders will get $48.75 per share in cash in the buyout. The Redwood City, Calif.-based company's shares closed at $47.79, up almost $2 (4.3 percent) on the day.
Market Cap: $5.23 billion
"Informatica and TIBCO were leaders in the on-premise integration market, but they have struggled to develop true cloud-focused solutions that deliver the scale, speed and reliability that companies need to conduct business in real time. It will be interesting to see how TIBCO and Informatica adapt under new ownership, which of their many disparate products they will focus on, and how that will affect their customers. Whatever their plans, it’s become clear that the integration landscape has already undergone a massive shift toward cloud-focused solutions," Gallegos said. Informatica might be only one in a series of new capital IT market moves this spring. The Oppenheimer market analysis firm said in The Street that it believes the infrastructure software environment remains ripe for further consolidation. It added that capital continues to be inexpensive and that private equity funds are making moves to acquire legacy assets with strong technology and customer footholds that could be bought back to the market in coming years. Analysts at the Stifel firm also told The Street that Citrix Systems, an Informatica peer, may be the next in line to be acquired. The firm believes the company could be bought for around $110 per share. The firm believes Teradata could also be a possible takeover candidate.