By Charles Hall
CPPIB, Canada’s largest pension fund, teamed with Permira, a European private equity group, to acquire Informatica (NASDAQ: INFA), the US data software and services company, in the largest leveraged buyout so far this year. The companies will pay $48.75 per share in cash to privatize Informatica, and valued the firm at $5.3 billion. The deal is expected to complete in the second or third quarter of 2015, pending regulatory and shareholder approval.
Reported profits for Informatica in 2014 were in excess of $1 billion, with a before-tax profit of $170.3 million.
The sale is in keeping with the strategy posited by Elliott Management, which holds nearly 10% of Informatica stock. Informatica stock jumped 8% to $47.92 per share following the announcement.
Our view on what this means for enterprise technologists: This will enable more internal investment on key mission capabilities relevant to your organization, if you make your needs known now it could pay off for your organization, which leads to this recommendation– call your Informatica rep into your office and tell them your biggest data challenges and ask that they relay word of that to their CTO and CEO. Enterprises that do that will stand a bigger chance of being heard, and with Informatica’s new resources you may be pleasantly surprised at how they respond.
- Permira, Canada pension fund buying Informatica (sfgate.com)
- Informatica is downgraded before potential sale this spring (bizjournals.com)
- Informatica Corp taken private by CPPIB and Permira in $5.3-billion deal (business.financialpost.com)
- Informatica goes private in $5.3B buyout (pcworld.com)
- UPDATE 2-Informatica to go private in $5.3 bln leveraged buyout (uk.reuters.com)
- Canadian Pension Plan and Permira to Buy Informatica in $5.3 Billion Deal (rss.nytimes.com)