CRM's $8 billion Informatica buyout move sharpens AI focus, supporting a hold rating amid soft revenue growth and underperforming stock.
Key Takeaways
CRM to acquire INFA for $8B to boost AI and data tools. Shares rise, ETFs like IGV, REX, FDN and DAT with exposure to both firms stand to gain.
Salesforce is trying to revive strong revenue growth by augmenting existing software.
Salesforce (CRM) is scheduled to report fiscal first-quarter results after the closing bell Wednesday, with analysts largely bullish on the cloud software company's stock.
Salesforce Inc (NYSE:CRM, ETR:FOO)'s planned $8 billion acquisition of data management software firm Informatica is a “smart and strategic” move that comes at the right moment to accelerate its artificial intelligence (AI) strategy, according to Wedbush. In a note Tuesday, Wedbush called the deal a key step in Salesforce's push to help enterprises better manage proprietary data used to build and train AI models.
Informatica's data-management software is seen as a key ingredient to AI agents just as Wall Street worries about slowing growth.
Salesforce is buying AI-powered cloud data management company Informatica in an approximately $8 billion deal.
Salesforce has acquired cloud data management firm Informatica in an $8 billion equity deal, marking a major move in its push to strengthen its AI and data infrastructure capabilities.
The shares of Informatica Inc (NYSE:INFA) are up 5.3% to trade at $23.75 at last glance, after the data management concern agreed to be bought by Salesforce (NYSE:CRM) in a deal valued at $8 billion.
Informatica (INFA) shares gained as the artificial intelligence (AI)-based data management software provider finally agreed to be purchased by Salesforce (CRM) after long negotiations between the tech firms.
Salesforce's $8 billion acquisition of Informatica aims to strengthen its position in the enterprise data market by integrating advanced data management and AI solutions.