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Salesforce’s stock declines following reports of potential acquisition discussions with Informatica.

The cloud software giant Salesforce experienced a 7% drop in its shares on Monday following reports of advanced discussions to acquire data management firm Informatica. Informatica, with a market capitalization of approximately $10 billion, also saw its shares decrease by 6% in response to the news.

The potential deal being negotiated is speculated to value Informatica below its closing stock price of $38.48 on the previous Friday, as reported by The Wall Street Journal. While both The Wall Street Journal and Reuters hinted at an imminent announcement, specific details regarding the size of the transaction were not disclosed.

If the acquisition were to materialize, it would mark Salesforce’s most significant deal since its acquisition of Slack for nearly $28 billion in 2021, which stands as the company’s largest acquisition to date. Prior to Slack, Salesforce made notable acquisitions like the purchase of data visualization company Tableau for $15.3 billion in 2019 and MuleSoft for $6.5 billion in 2018.

When approached for comment about the reports, Salesforce chose to remain silent on the matter. On the other hand, Informatica did not provide a response to inquiries about the potential acquisition.

People pass by the Salesforce Tower and Salesforce.com offices in New York City on March 7, 2019.

Brendan McDermid | Reuters

Salesforce shares closed down 7% on Monday after reports over the weekend that the cloud software company is in advanced talks to buy data-management firm Informatica.

Shares of Informatica, which has a market cap of around $10 billion, closed down 6% following the reports.

The price being weighed is below Informatica’s closing stock price on Friday of $38.48, according to The Wall Street Journal, which first reported the talks on Friday. A Reuters article said the deal could be announced soon. Neither publication provided specifics on the size of a potential transaction.

Regardless, it would be Salesforce’s largest deal since purchasing Slack for nearly $28 billion in 2021, the company’s largest acquisition to date.

Prior to Slack, Salesforce bought data visualization company Tableau for $15.3 billion in 2019, and MuleSoft for $6.5 billion in 2018.

Salesforce declined to comment on the reports. Informatica didn’t respond to good’s request for comment.

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