Microsoft, Salesforce Take a Stake in Newly Private Informatica

By Pedro Hernandez  |  Posted 2015-08-07 Print this article Print
Informatica deal

The tech heavyweights are named strategic investors as the $5.3 billion deal for the data integration software specialist draws to a close.

The multibillion-dollar deal to take Informatica private closed on Aug. 6, announced the Redwood City, Calif., data cleanup and quality company. Stocks, which traded under the INFA ticker symbol, stopped trading on NASDAQ yesterday. Stockholders get $48.75 in cash per share under the terms of the deal.

Informatica is one of the world's leading data integration software providers, with more than 5,800 enterprise customers relying on its on-premises and cloud offerings to derive meaningful, value-building information from the flood of data produced by mobile devices, PCs and servers. "Now as a private company, with a long view measured in years, not quarters, we will have more flexibility and more time to implement our transformative innovation roadmap and to evolve our business model," said Sohaib Abbasi, former CEO of Informatica, in a statement. "I have every expectation that the best years for Informatica are yet to come."

The transaction, valued at $5.3 billion, was initiated in April by private equity firms Permira Funds and Canada Pension Plan Investment Board (CPPIB), beating a rival bid from Thoma Bravo LLC and Ontario Teachers' Pension Plan. Also yesterday, Informatica announced that two major technology companies had joined the proceedings.

In a statement to the press, the company revealed that "Microsoft Corporation and Salesforce Ventures have agreed to become strategic investors in the company alongside the Permira funds and CPPIB." The value of those investments have not been disclosed.

Informatica has a history with both Microsoft and Salesforce. Last month, the company joined Microsoft to announce new cloud-based analytics products.

"This partnership will allow customers to easily integrate business data from hundreds of sources into Cortana Analytics and seamlessly migrate their data integration processes to Azure," said Microsoft's Joseph Sirosh, corporate vice president of Information Management and Machine Learning at the software giant, in a July 14 announcement. "Informatica will continue to provide pre-built native integration between its products and services with those from Microsoft—for instance, the Informatica Cloud for Microsoft Azure."

"Informatica has been a strong part of Microsoft’s partner ecosystem as a data integration leader and we are excited to support Informatica in this new stage of growth as a private company," said a Microsoft spokesperson in an email to eWEEK.

In October, Informatica announced new integrations with Wave, Salesforce's analytics cloud. "The convergence of mobile, social and cloud computing has sparked a data revolution," said Keith Bigelow, senior vice president and general manager of Salesforce Analytics Cloud, in a statement at the time. "With partners like Informatica, customers can integrate, relate and aggregate data from any source to accelerate these amazing insights."

The deal's completion also leaves new executive leadership in its wake.

Abbasi steps down as CEO, replaced by Anil Chakravarthy, chief product officer, as acting CEO. Chakravarthy remarked that the now-private company's roadmap features "four distinct billion-dollar opportunities: cloud integration, next generation big data integration, MDM solutions and data security."


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