Business software player Informatica is to become a private company after agreeing to be acquired for US$5.3bn by a company controlled by the Permira Funds and Canada Pension Plan Investment Board.
Under the terms of the agreement, Informatica shareholders will receive US$48.75 in cash for each share of Informatica common stock.
“After careful consideration and deliberation of strategic alternatives, our Board of Directors unanimously concluded that the sale of Informatica to the Permira Funds and CPPIB is in the best interest of all Informatica stakeholders,” said Sohaib Abbasi, chairman and CEO of Informatica.
“While delivering immediate compelling value to our shareholders, we remain committed to the long-term success of our customers, partners, and employees. Permira and CPPIB share both our vision for Informatica to power the data-ready enterprise and our conviction in sustained long-term growth.”
The deal follows efforts by activist investors Elliot Management to pursue better shareholder value after Informatica failed to sell itself earlier this year.
The Nasdaq-listed California business software player made revenues of US$948m in 2013 and employs 3,600 people.
Its core products are in the areas of IT architecture, data integration, data quality, information lifecycle management and cloud.
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