Informatica completes $5.3 billion buyout, gets a new CEO

The company has also now added Salesforce and Microsoft as strategic investors

Financial trends and news by Steven Loeb
August 6, 2015
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(Updated with comment from Microsoft)

In April of this year Informatica, a publically traded provider of enterprise data integration software and services, announced that it had agreed to be sold, saying that it was in "the best interest of all Informatica stakeholders." 

On Thursday it revealed that the deal is now officially done, and that the company has been sold for approximately $5.3 billion to to a company controlled by the Permira funds and Canada Pension Plan Investment Board (CPPIB). Informatica stockholders received $48.75 in cash per share. 

That means that Informatica will cease trading on the NASDAQ after trading ends today. That's not the only thing changing, though, as there was a huge overhaul in leadership as well.

The company now has a new CEO in Anil Chakravarthy, its former chief product officer. Sohaib Abbasi, who had been both chairman and chief executive officer for over a decade, will continue to serve as chairman of Informatica.

Bruce Chizen, former chief executive officer of Adobe, has joined Informatica as a board member and as a special advisor to the company.

“It is a privilege to lead the world-class Informatica team in this promising new phase of growth as a private company,” Chakravarthy said in a statement. “Our transformative innovation roadmap includes four distinct billion-dollar opportunities: cloud integration, next generation big data integration, MDM solutions and data security. And living our customer-first culture, we will evolve our business model to match customers’ preferences for pay-for-use subscription offerings.”

And if that news wasn't enough, it was also announced that Microsoft Corporation and Salesforce Ventures have bioth agreed to become strategic investors in the company alongside the Permira funds and CPPIB. Informatica is said to have relationships with both companies, having participated in Salesforce's Dreamforce conference for years, while also using Microsoft's cloud offerings.

For those companies, they obviously see a big opportunity ahead for Informatica as a private company, and multiple statements on the deal pointed to being a  "multi-billion dollar" opportunity. 

“We look forward to working with management, including Anil as acting CEO, to support the Company in its vision to become a multi-billion dollar leader in the broader data integration space," Mark Jenkins, Senior Managing Director & Global Head of Private Investments at CPPIB, said.

“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," a Microsoft spokesperson told VatorNews.

A Salesforce spokesperson declined to comment.

Founded in 1993, Informatica Corporation is a provider of data integration software. Its products include cloud integration, data quality, data security and the Integration Platform-as-a-Service, which are used by over 5,800 enterprises worldwide. Customers include Western Union, Citrix and M.D. Anderson Cancer Center. 

In its most recent quarterly earnings report, Informatica saw total revenue go up 4 percent year-to-year to $261.9 million.

It saw eecord subscription revenues, up 39 percent year-over-year to $22.5 million, and software revenues go up 7 percent year-over-year to $110.8 million.

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