Informatica said Tuesday that it will go private in a deal valued at about $5.3 billion. Informatica has become a key enterprise data integration vendor.
According to a statement, Permira, a private equity firm, and the Canada Pension Plan Investment Board will acquire Informatica for $48.75 a share.
Informatica had been exploring strategic alternatives. Sohaib Abbasi, CEO of Informatica, said the company will maintain its strategy to be a cog in the so-called "data-ready enterprise." Informatica's annual revenue passed the $1 billion mark in 2014. Informatica's move to go private comes after Tibco sold late last year for $4.3 billion. Dell is the most high profile technology company to go private in the last two years.
Oppenheimer analyst Shaul Eyal said there will be more deals like Informatica's. He said:
We believe the infrastructure software environment remains ripe for further consolidation. Capital is cheap, and private equity funds are jockeying to acquire legacy assets with strong technology and customer footholds that could be brought back to the market in coming years with a new buzz and hopefully higher valuations.
The software company, which has more than 5,000 customers and 3,600 employees, is planning to grow via a focus on cloud integration, master data management, analytics and integration and security. Informatica's revenue primarily revolves around data integration.
Informatica's board has approved the deal, which should close in the second or third quarter. Like most software companies, Informatica has been making the turn toward subscription revenue and a cloud model.
However, most of Informatica's revenue revolves around licenses and services.