I have heard from two senior sources in the software industry that Informatica [INFA] is on the block and it has approached Oracle [ORCL]. I don't know what the possible acquisition price would be or any further details.
Informatica's share price closed at $16.45 on Friday May 9. It's market capitilization is $1.45 billion.
Informatica is located in Redwood City, very close to Oracle's headquarters. It is in a software sector that has seen a lot of M&A activity. In an interview last week, Rob Ashe, head of IBM's business intelligence group, told Larry Dignan, Editor-in-Chief of ZDNet, that the Business Intelligence market has seen a lot of consolidation and will likely see more.
SAP bought Business Objects, Oracle picked up Hyperion and IBM acquired Cognos. “The consolidation we have seen is a manifestation of the importance of BI to companies both large and small,” says Ashe. The rub: Customers are “expecting more from vendors in this space.” Ashe wouldn’t discuss what other BI players (think Informatica) may be acquired, but did note that it’s difficult to see a big consolidation round given many of the large players have already been gobbled up. “There are fewer targets, but I wouldn’t say the consolidation is over,” said Ashe.
It is more than a year since Oracle acquired Hyperion and Informatica's technologies look to be compatible with those of Oracle. Also, there is synergy in Informatica's executive ranks.
Informatica's Chairman and CEO Sohaib Abbasi joined the company in July 2004. He is a 20 year veteran of Oracle.
Informatica's board of directors includes Geoffrey Squire, a former CEO of Oracle Europe. Also: Godfrey Sullivan, the former CEO of Hyperion sold to Oracle. There is plenty of expertise n hand for Informatica to negotiate a deal with Oracle.