Salesforce, Informatica reportedly can’t agree to deal terms

Salesforce, Informatica reportedly can’t agree to deal terms

Salesforce Inc.’s bid to buy Informatica Inc. has sputtered after neither company could agree to terms, the Wall Street Journal reported Sunday night.

Bloomberg News confirmed the report, saying the companies have not been able to agree on a price.

The deal, which could have been valued around $10 billion, would have been among Salesforce’s largest acquisitions, but had run into opposition from analysts and investors.

Neither Salesforce nor Informatica immediately replied to requests for comment Sunday night.

The Journal first reported Salesforce was closing in on the deal on April 12, and Salesforce stock CRM, -0.57% has sunk about 8% since then, while Informatica shares INFA, +0.31% have dropped about 8.5%.

Wall Street analysts expressed concerns over the deal, worrying it indicated Salesforce was pivoting back toward a growth strategy rather than maximizing profitability. It could have also signified a return to Salesforce’s old M&A habits, which have had a spotty track record and drew the ire of activist shareholders last year.

There were also concerns that Salesforce, which specializes in business software, would be duplicating some of its product lines in absorbing Informatica, which makes data-management software.

Informatica co-founder Gaurav Dhillon last week called a potential acquisition a bad match.

Salesforce shares have fallen about 12% over the past month, but are up 2.8% year to date, while Informatica shares are down 4% in the past month and up 24% year to date.

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