Salesforce Inc (NYSE:CRM, ETR:FOO)’s planned $8 billion acquisition of data management software firm Informatica is a “smart and strategic” move that comes at the right moment to accelerate its artificial intelligence (AI) strategy, according to Wedbush.
In a note Tuesday, Wedbush called the deal a key step in Salesforce’s push to help enterprises better manage proprietary data used to build and train AI models.
The firm highlighted that the $25-per-share offer – reflecting roughly five times FY25 EV/revenue and about 21.5x forward P/E – underscores Salesforce’s renewed appetite for large-scale acquisitions as it seeks to deepen its AI capabilities.
“This is the right deal at the right time,” Wedbush wrote, adding that Informatica has long been viewed as a logical target. “We believe this has been in the works for quite a while.”
The proposed acquisition, expected to close in early 2026, marks Salesforce’s largest deal since its $28 billion purchase of Slack in 2021.
Wedbush said the Informatica transaction fits directly into Salesforce’s AI roadmap, especially as more companies seek to use their own data to drive AI-powered processes.
“Informatica’s strong customer base — including over 5,000 clients, roughly 2,500 cloud subscription ARR customers, and more than 80% of the Fortune 100 — leverages this technology for analytics and AI,” Wedbush noted. “This could significantly strengthen CRM’s AI strategy and broaden its enterprise reach.”
Wedbush sees meaningful cost synergies of 15% to 20% from the deal, and expects it to be accretive to Salesforce’s non-GAAP operating margin, earnings per share, and free cash flow in the second year after closing. The firm also emphasized the opportunity for cross-selling between the two companies’ customer bases.
The brokerage does not anticipate regulatory hurdles but noted the possibility — albeit unlikely — of rival bids, including from private equity. “We believe this is a synergistic fit within CRM’s AI portfolio and view competing offers as unlikely,” Wedbush said.
“With all eyes on Salesforce’s AI buildout, this acquisition creates a stronger foundation for Agentic AI and unlocks further cloud opportunities,” Wedbush wrote. “It also opens the door to additional M&A as Benioff & Co. expand their data infrastructure and platform strategy.”
Salesforce is set to report fiscal first-quarter results on Wednesday after market close.